Final levels of apprenticeship funding revealed

Final levels of apprenticeship funding revealed

This morning the government released an update to their apprenticeship reform plans, including final levels of funding for new framework and standards starts from May 1, 2017. Click here to read.

The latest information first appeared in a ministerial statement here, and follows a three week consultation on provisional plans that was published in August.

Final funding levels announced this morning include:

  • Higher funding for STEM apprenticeship frameworks and higher pricing of apprenticeship standards to support improved quality, and greater flexibility to train those with prior qualifications;
  • Longer period of time for employers to spend funds in their digital account, now with 24 months before they expire, an increase from our original proposal of just 18 months;
  • A commitment to introducing the ability for employers to transfer digital funds to other employers in their supply chains, sector or to apprenticeship training agencies in 2018, with a new employer group including the Confederation of British Industry, Federation of Small Businesses, British Chambers of Commerce, Charity Finance Group and EEF – the Manufacturers’ Organisation – to help government develop this system so that it works for employers.
  • A 90 per cent contribution from government to the cost of training for employers that will not pay the levy;
  • A 100 per cent contribution from the government to the cost of training for small employers, that will not pay the levy and who take on apprentices who are 16 to 18 years old, 19 to 24 year old care leavers, or 19 to 24 year olds with an education and health care plan;
  • £1,000 each from government to employers and training providers when they take on 16 to 18-year-olds, 19 to 24-year-olds who were in care or who have an education and health care plan;
  • Help for training providers to adapt to the new, simpler funding model through an additional cash payment equal to 20 per cent of the funding band maximum where they train 16 to 18 year olds on frameworks; and
  • A simplified version of the current system of support for people from disadvantaged areas, to ensure the opportunity to undertake an apprenticeship is open to everyone, no matter where in England they live, their background or family circumstances.

As previously reported, the rethink on 16 to 18 year-old apprenticeship funding levels is to include an “additional cash payment equal to 20 per cent of the funding band maximum” as well as a “simplified” disadvantage uplift, is an important intervention from the new apprenticeships minister, Robert Halfon.

It follows FE Week analysis and a highly successful campaign which exposed planned rate cuts of up to 50 per cent.

Applications for a new Register of Apprenticeship Training Providers (RoATP) have also launched this morning. Click here for more information.

The Department for Education has said that in “December there will be information about further employer guidance from HMRC on how to calculate and pay the apprenticeship levy.”

Documents published this morning:

> Apprenticeship funding in England from May 2017

> Apprenticeship frameworks: funding bands from May 2017

> Apprenticeship standards: funding bands from May 2017

> Supporting quality and employer choice through a new register of apprenticeship training providers

>Apprenticeship funding: how it will work

> Equality analysis: apprenticeship funding policy from May 2017

> Costs and behaviours in the 16 to 18 apprenticeship system: a report by Frontier Economics and CFE Research

> The apprenticeship levy: how will employers respond?

> Apprenticeship funding: rules and guidance for levy-paying employers

> Apprenticeship funding: draft rules for employer-providers

> Apprenticeship funding: draft rules for training providers

> Draft apprenticeship performance management rules 2017 to 2018


FREE webinar on the apprenticeship reforms with Nick Linford, author of the Complete Guide to Funding Apprenticeships
>27 October 14:00- 1500 – To register click here

Workshops on the apprenticeship reforms with Nick Linford and the Skills Funding Agency
> 4 November in London – To find out more and register click here  
> 8 November in Liverpool – To find out more and register click here
> 9 November in Birmingham – To find out more and register click here

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