Significant changes on the way for Apprenticeship standards and funding

There are significant changes ahead to Apprenticeships with the Government reforming both the standards and the funding mechanism. Here, the Apprenticeship Hub provides further details.

Apprenticeship Standards

Following a number of reviews, Apprenticeship Standards are replacing the current Specifications for Apprenticeship Standards in England (SASE).

These new standards have a few significant changes, not least the inclusion of an end-point assessment before any apprenticeship can be awarded. City & Guilds have produced a visual summary of the changes: http://www.cityandguilds.com/~/media/apprenticeships/images/trailblazer/apprenticeshipstandards%20png.ashx

It is expected that there will be between 600-800 new Apprenticeship Standards, compared to the current 250 SASE Frameworks. Some of these new standards are already available for delivery, so at present there is a cross-over period where some new standards are being delivered alongside the SASE Frameworks. However, once a new standard is in place, the outdated framework which it replaces will be discontinued as soon as it is practical to do so.

We expect the full switchover to take place by 2020, although this date is subject to change.

The Apprenticeship Levy

From April 2017 a new Apprenticeship Levy will come into effect. The Apprenticeship Levy will require all employers operating in the UK to make an investment in apprenticeships of 0.5% of their PAYE bill – there is however an allowance given by government so only those with a PAYE of over £3m are financially impacted.

Last month the Department for Education confirmed plans for those below that threshold. Most employers will only have to pay 10% towards the cost of an apprenticeship and employers with fewer than 50 staff won’t have to pay at all for apprentices aged between 16-18.

Click here (https://www.gov.uk/government/publications/apprenticeship-levy-how-it-will-work/apprenticeship-levy-how-it-will-work) to access the full update from the Department for Education.

The next scheduled announcement is due in October and we will keep you updated with any further developments through Warwickshire Means Business and on our website: https://www.warwickshire.gov.uk/getanapprentice.