From May 2017, the way apprenticeships are funded is changing.  Government have now set out how it will work.

The apprenticeship reforms will support an increase in the quality and quantity of apprenticeships so that more individuals have the chance to pursue a successful career – whether this is their first step on the employment ladder or progression within a current employer or sector. They want to make apprenticeships as accessible as possible, to all people, from all backgrounds and the funding reforms are an important step in enabling this.

After extensive discussions with employers and training providers Government have now published the final funding policy for 2017-18 and details of the new register of apprenticeship training providers.

Key Changes Announced

  • Give employers extra flexibility and the extra time they need to plan for the reforms by extending the expiry date of levy contributions to 24 months (from the 18 months originally proposed);
  • Introduce a system for employers to transfer funds from 2018, working with a new employer steering group to design this system so that it meets their needs;
  • Help training providers adapt to the new, simpler funding model, by increasing their funding by an extra 20% where they train 16 to 18 year olds on frameworks. This will come from government and not from employers’ digital accounts.  This transitional payment will ensure stability as the market adjusts to reforms;
  • Retain a simplified version of the current system of support for those from disadvantaged areas for one year whilst Government conduct a fuller review into the best way to support individuals from all backgrounds into apprenticeships.
  • Employers paying the levy will be able to choose a provider from the new Register of Apprenticeship Training Providers. All providers on the register will have to pass quality and financial tests.  Providers who want to deliver less than £100k of apprenticeship training per year as a subcontractor can choose to apply for the register but it will not be compulsory.   The new register is now available for applications along with a procurement for apprenticeship delivery for smaller employers who will not pay the levy.

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