Changes to Apprenticeship funding
Changes to Apprenticeship funding in the UK is happening in 2017
If you have an apprenticeship scheme or are planning to run one then you may be aware of the proposal put forward by the government to change the way apprenticeships are funded.
What might this mean for you? Right now, all we have is a proposal document laying out the desired changes but consultations are still ongoing with employers and training providers, so it’s fair to say that no one really knows what the final outcome is going to be.
In a nutshell, the main focus is on funding and how companies contribute. The proposal lists the following points:
◊ Employers with an annual wage bill in excess of £3million to contribute into an Apprenticeship Levy Fund
◊ 15 new ‘funding bands’ to be introduced
◊ Govt. to co-invest 90% of funding alongside eligible companies who would put in 10%
◊ Level of Funding no longer relying on age of apprentice or location of training
So, what do you do now?
Well, you might look at this and come to the conclusion that you really need to address this immediately. You might even have been given the impression by some people that you have to do something immediately. We’d say hang on. Don’t get pushed into rushing a decision as these consultations never run quickly and until we know what the final picture’s going to look like…
That’s not to say you should pause all your apprenticeship decisions. If you need training now, talk to us, get them enrolled. These changes (in whatever form they take) don’t begin until May next year.
Stay in touch with us, subscribe to this blog, call us anytime if you have questions and we’ll keep you up to date. After all, it’s as important to us as it is to you!