Apprenticeship Reforms

From the 6th April 2017 the way that Apprenticeships are delivered & funded is changing. If you are planning to employ apprentices or already do these changes may affect you.

Here are the key changes that will be taking effect:

Key Points - Funding

If your payroll is over £3million per annum you will pay a 0.5% levy which you will receive back in the form of digital vouchers to be spent on apprenticeships.

You will receive an additional 10% top up in addition to your levy payments meaning for every £1 you contribute to the Levy, you will receive digital vouchers for £1.10.

If your payroll is less than £3million you will contribute 10% and government will contribute 90% to the cost of an apprenticeship. The same model will apply to levy-payers who have exhausted their funds.
The government will fund 100% of the cost of apprenticeship training for a 16-18 year old for businesses with fewer than 50 employees.

The new apprenticeship funding system will be made up of 15 bands, ranging from £1,500 to £27,000.  All existing and new apprenticeship frameworks and Standards will be allocated to the nearest funding band based on the current rate of funding  regardless of the ages of the learner, or geographic location.

All employers will receive an incentive payment of £1000 for employing a 16-18 year old apprentice. The training provider will also receive an incentive payment of £1000 for delivering apprenticeship training for a 16-18 year old.
Maths & English at Level 2 will continue to be funded by the Government where needed in an apprenticeship.  Training providers will be funded for this directly by the government.

Key Points – Delivery

- The Government aim to replace all existing apprenticeship frameworks with new Apprenticeship Standards by 2020.

- You can still enroll your apprentices existing Apprenticeship Frameworks until 2020.

- Apprenticeship Standards will include an Endpoint Assessment which will include

- You will be able to negotiate the cost of apprenticeships directly with your training provider

- Levy paying employers will need to register onto a Digital Apprenticeship Service from January 2017 to procure apprenticeship training, advertise & find apprentices.

- Employers that do not pay the Levy will deal directly with training providers

If you are unsure how the reforms will affect your business, or would like support in preparing and planning for the reforms you can contact our Skills Team on 01924 302703 or