Further details on the Apprenticeship Levy has been announced with an accompanying consultation on the funding proposals.

The DfE has set out proposals for apprenticeship funding in England from May 2017 and are inviting feedback on these proposals.

Key points include:

  • Support for all employers to offer high-quality apprenticeships: employers which are too small to contribute to the apprenticeship levy would have 90% of the cost of apprenticeship training paid – ensuring employers of all sizes can develop the next generation of skilled workers
  • provide extra funding for young apprentices and care leavers: the government will pay an additional £2,000 to help 16- to 18-year-olds, young care leavers and young people with an education, health and care (EHC) plan, make their first step into the world of work – with £1,000 going to employers and an additional £1,000 to training providers. Furthermore, employers with fewer than 50 employees will not have to pay anything towards the cost of training a 16- to 18-year-old apprentice, young care leaver or young person with an EHC plan
  • offer more flexibility for employers to retrain individuals: employers will be able to use levy funds to retrain workers in new skills, even if they have prior qualifications – giving them the freedom to make the training decisions that are right for them so they can train any individual to start an apprenticeship, as long as it is significantly different from their previous qualifications
  • support employers taking on more apprentices: levy-paying employers – those with a pay bill of over £3 million that want to spend more on training than is in their digital account – will benefit from government support with 90% of their additional apprenticeship training costs being funded, so they can continue to recruit and retrain highly-skilled employees
  • give employers more control and access to better quality training: employers will have the power to determine exactly what training their apprentices receive and what provider they receive it from. A new register of training providers, also outlined today, will be introduced from April 2017 to improve the link between training providers and employers to will help employers identify a high-quality provider so they can deliver the skills they need to grow.


Full details of this consultation is available here: https://www.gov.uk/government/publications/apprenticeships-proposals-for-funding-from-may-2017

In addition, the Government is also inviting employers and training providers to have their say on the initial funding proposals, and, particularly, how they plan to adapt their hiring, training and development activities in response to these reforms. You can respond by completing this survey by 5 September 2016. https://beisgovuk.citizenspace.com/ve/apprenticeship-funding-proposals