June 26, 2019 | No Comments
Announced in this year’s Spring Statement, and with effect from 1 April 2019, the package of reforms to the apprenticeship levy aim to strengthen the role of employers. So, what does this mean for you?
The key facts are:
- the levy is paid by UK employers with payroll costs above £3m, then boosted by additional Government investment;
- the levy co-investment rate has been cut from 10% to 5%; and
- the 5% contribution will also apply if the employer’s levy pot is empty.
This support might be needed: in 2017-18 apprenticeship levy-paying employers only accessed £191m of an available £2.2bn in levy funds and government top-ups, despite these funds expiring after two years.
However, these unspent funds can be used elsewhere. If you can have less than £3m in payroll costs, you can access the funds by paying just 5% of the cost of your apprenticeship training and the Government pays the rest.
Levy paying employers can now also transfer up to 25% of their funds to other employers (previously this was just 10%) if you would prefer to support other businesses in your supply chain.
Consistency and more choices for apprentices has also been invested in by the Government: apprenticeship standards will be updated or new ones introduced by September 2020.