Non Levy

Posted by on Feb 5, 2014 in Front Page, Mobile | 0 comments

Buying Apprenticeship Training

Employers that don’t pay the levy

From the 1st May 2017 all employers that don’t pay the levy will be required to make a 10% contribution to the cost of apprenticeship training and the government will pay the rest, up to the maximum amount of funding available for that apprenticeship. Funding bands have been put in place with this in mind.  As both the employer and the government make a payment, this is called ‘co-investment’.

The new apprenticeship funding system is made up of 15 funding bands, with the upper limit of those bands ranging from £1,500 to £27,000 depending on the sector. Employers will then negotiate a price with their chosen provider for their apprentice’s training and assessment.  This will be made up of the standards, the required training support, diploma and the end point assessment.  Functional skills are also included in the required training.

Each sector for apprenticeship training now has a funding band in terms of the amount of funding that is allocated to each area.  For instance Health and Social Care levels 2 & 3 are a band 4.

 

For example:  If the training cost was agreed at £3000 for a level 2, (Adult Care Worker) the employer will invest 10% of this being £300 and the government will then also co-invest the remaining £2700.

The £300 is paid directly to the provider which in turn allows them to draw down the co-invested government funds each month during the apprentice’s training.  The apprentice/existing member of staff requiring the funding is not allowed to pay the 10% themselves as this is an employers contribution.

To allow the apprentice or existing member of staff to receive the funding for their training it is vital that the employer and provider have fully discussed how the training will be delivered and what commitment is to be required.  With this in mind a contract is drawn up between the employer and provider that outlines the costs, the training to be carried out, the time scales involved and the end point assessment.  Once this has been approved and signed by the employer and provider the 10% employers contribution is payable.  This may be in a full contribution or it may be have been arranged in the contract to pay over, for example, 10 equal monthly payments.  The learning will then be approved and the apprentice/member of staff will be signed up to their qualification.

Employers with less than 50 staff

Employers with fewer than 50 people working for them will be able to train 16-18 apprentice’s at no cost and those aged 19 to 24 who have previously been in care or who have a Local Authority Education, Health and Care plan. These employers will not be required to contribute the 10% co-investment; instead the government will pay 100% of the training costs for these individuals.

The new funding being claimed must not exceed the 50th member of employment otherwise the 90-10 co-investment will be payable.

Additional payments and incentives for Employers

CLC are committed to apprenticeship programmes that support young people into quality apprenticeships and we recognise that for employers who take on young apprentices aged 16 to 18 years old, there are some additional costs associated with supporting them in the workplace. For example, research on apprenticeships for 16-18 year old’s suggests that these apprentices can require significantly more supervision and pastoral care.

When employers take on a 16 to 18 year old on an apprenticeship framework or standard, they will receive £1,000 to help meet the extra costs associated with this. This will be paid to employers in two equal installments at 3 months and 12 months. Initially, these payments will be made to employers via their training provider, who will pass the money on.

We want these apprentices to have equal opportunity in the workplace and so employers who train an apprentice who is aged 19 to 24 and has previously been in care or who has a Local Authority Education, Health and Care plan, will receive £1,000 to help with these additional costs in the same way as the payment for 16 to 18 year old’s. We want to continue to support smaller employers to take on those who need more support.

Please contact our team for more information or if you would like a visit to discuss this in greater detail

 

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