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The Apprenticeship reforms and how they will work

The Government has released further proposals for the reforms to Apprenticeship training and funding. 

A summary of the Proposals

  • From May 2017, graduates or others with Higher Level Qualifications can be funded to do an Apprenticeship so long as the learning is materially different to their existing qualifications
  • It is proposed that there will be 15 funding bands from May 2017 ranging from £1,500 to £27,000 to cover the cost of Apprenticeship training
  • Current Frameworks and new standards will all be allocated to a funding band from May 2017
  • Final funding arrangements will be announced in October 2016
  • The AGE grant will continue to be available till the end of the academic year 2016/17 with the last applications possible on 30 April 2017
  • A new register will be set up and all training and assessment organisations will be required to register if they want to deliver Apprenticeship training or assessment. (RoATP)
  • The register will open in October 16 initially and then 4 times a year

If you are an employer it is proposed that from May 2017

  • If you have less than 50 staff you will be able to access 100% funding for the cost of Apprenticeship Training from the Government for 16 to 18 year olds and 19 to 24 year olds who have previously been in care or have an Education, Health and Care Plan
  • You will pay 10% of the cost of Apprenticeship training if you have more than 50 employees and do not have a pay bill in excess of £3m per year
  • Regardless of your size, You will receive an additional £1000 funding for each apprentice you start aged 16 to 18.  (£500 at 3 months and £500 at 12 months)
  • Regardless of your size, You will receive an additional £1000 funding for each apprentice you start aged 19 to 24 who has previously been in care or who has an Education, Health and Care Plan.  (£500 at 3 months and £500 at 12 months)
  • If you have a pay-bill over £3m you will pay the levy to HMRC at 0.5% of your pay bill monthly.  The levy you pay will be topped up by 10% and put into an online account.  You can spend this money within 18 months on Apprenticeship training with an approved training provider.

In September 2016 the HMRC released draft regulations for businesses on the levy and are seeking employers views.   

If you would like to discuss any of the reforms that are proposed and what they may mean for you, please call 0344 8008024 or email apprenticeships@norfolk.gov.uk