Apprenticeship levy: government to provide 90% subsidy for S

Published on 12 Aug 2016

Government is set to subsidise 90% of the cost of an apprenticeship for most UK employers, according to an announcement by the Department for Education this morning.

The hotly anticipated news - coming on the back of a three-week consultation period - details revised plans for the levy, due to kick in from April 2017.

It sets out the government's intention to subsidise 90% of apprenticeship training costs for employers with annual payroll bills under £3m.

Those over the threshold will receive a 10 per cent monthly top-up.

However, if their levy account is insufficient then like smaller employers, 90 per cent of their additional apprenticeship training costs will be subsidised.

APM delivers a series of apprenticeship programmes, from retail and warehouse to health and social care.

Its experienced apprenticeship team is keen to do all it can to support new and existing employer partners through a potentially complex funding landscape.

APM's Director of Skills, Sara Goldie said: "Many employers are going to feel understandably apprehensive about the prospect of the apprenticeship levy being introduced.

"Our message is not to worry. We have experts on hand who can offer practical advice and guidance throughout the process and help businesses to develop what we all want - successful apprentices to help take our companies forward."

Despite retaining plans to introduce a mandatory cash contribution for the first time it will be hoped the 90% subsidy arrangement - considerably more than that of the pilot programme - will address fears that small employers won't engage in the reformed apprenticeship programme.

Other new announcements within the consultation include:

  • A£2,000 incentive to help 16-to 18-year-olds, young care leavers and young people with an Education and Health Care (EHC) plan, make their first step into the world of work - split £1,000 to employers and £1,000 to training providers.
  • Employers with fewer than 50 employees will not have to pay anything towards the cost of training a 16-to 18-year-old apprentice, young care leaver or young person with an EHC plan.
  • Government has launched a new online calculator to help employers to better understand how the levy and funding system will work for them: click here