Jun 2ND

Apprenticeship Changes from April 2017

Important information for non-levy paying employers

Current prediction shows that only 2% of employers will pay the new apprenticeship levy. However there are changes proposed to apprenticeship funding that will affect everyone. Currently Moulton College does not charge any employer contribution for intermediate or advanced apprenticeships regardless of learner age. From April 2017 all employers will be required to make a contribution to the cost of apprenticeship training which will be in the form of a cash contribution for employers that do not pay the new levy. Moulton College will therefore be obliged to charge for the cost of apprenticeship training for new apprentices recruited after April 2017. Further details regarding these changes can be found below.

The introduction of the apprenticeship levy from April 2017 will see changes to the funding for apprenticeship training for all employers whether they are paying the apprenticeship levy or not. It is important to understand these changes when planning your training for the next year.

All apprentices who start an apprenticeship programme before April 2017 will continue to be funded for the full duration of their apprenticeship under the current system. Under the current system the government does reduce funding for certain apprentice learners and there is the expectation on employers to make contributions to the cost of apprenticeship training for 19+ learners and for higher level apprenticeships. Currently Moulton College does not charge any employer contribution for intermediate or advanced apprenticeships regardless of learner age.

From April 2017 all employers will be required to make a contribution to the cost of apprenticeship training regardless of whether they are in scope for levy payments or not. This is being classed by the government as ‘co-investment’. Further details of this contribution along with information relating to the proposed rate of government support should be available from late June 2016.

For employers paying the apprenticeship levy this ‘co-investment’ will be taken from levy contributions but for non-levy paying employers there is an expectation that employers will make a small contribution for all apprenticeship training with the remainder of funding provided by the government. The current transitional arrangements are set at £2 government contribution for every £1 employer contribution.

Although full details are not yet known about the rate of these employer contributions, what is becoming clear is that all employers will be expected to contribute to apprenticeship funding in the future regardless of apprenticeship age. During this uncertain time there is one clear message to SME and micro businesses; if you are considering taking on an apprentice over the next twelve months it is probably better to act now and start the apprentice on programme before April 2017 since currently Moulton College asks for no contribution towards the apprenticeship training and you may be eligible for a grant of £1500 per eligible learner aged 16 -24 towards the costs of setting up your apprenticeship scheme.

Moulton College Apprenticeship team can support you throughout the apprenticeship process from advertising and filling your vacancy to providing support while on programme and through to completion. They can also advise on any grants and bursaries that may be available and support you to apply for these.

If you would like to recruit an apprentice before these changes come into effect please contact the apprenticeship team on apprenticeships@moulton.ac.uk or on 01604 673575. Also please follow the team on twitter @MoutonWBL for further updates on the funding changes.