Apprenticeship Funding 2017
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From 1 May 217, new rules regarding the funding of both framework and standards-based apprenticeships come into effect. In essence, funding for apprenticeships falls within two broad camps:
- Employers having a wage bill in excess of £3 million will pay a 0.5% levy (in addition to the CITB levy) and can use all the funds from their digital account to pay for apprenticeship training;
- Employers with a wage bill below £3 million will not pay levy and will get 90% of apprenticeship training paid through Government funding.
Additional funds can be claimed by apprenticeship levy-paying employers where the cost of apprenticeship training exceeds funds in their digital account, and additional incentive payments are available where an apprentice is between 16 and 18 years of age.
The following CPA webpage http://www.cpa.uk.net/apprenticeship-funding-2017/ provides further detailed information on apprenticeship funding and contains links to a range of websites where additional information can be sourced. CPA analysis indicates that the majority of CPA members will not be subject to the apprenticeship levy.
Please note that:
- the funding changes won’t affect apprentices who started an apprenticeship prior to 1 May 2017;
- different rules apply to apprenticeship funding in Scotland and Wales, where funding will be accessed in the same way as it is at present;
- different rules apply to groups of companies having the same owner (Connected Companies). HMRC on 0300 200 3200 can supply further information.
Standards-based apprenticeships are known as Trailblazer apprenticeships for which the CPA are providing administration support to four trailblazers:
- Lifting Technician
- Construction Equipment Operative
- Construction Equipment Maintenance Engineer
- Plant Hire Desk Controller
Each of these trailblazer apprenticeships are at various stages of completion, development or awaiting approval to commence development meaning that the current framework apprenticeships are eligible for the new funding arrangements.
Further information on the stages of development for the trailblazer apprenticeships can be found at www.cpa.uk.net/trailblazers.