Home / Updates / The apprenticeship levy: Michelle Rainbow provides an update following government’s latest announcement

The apprenticeship levy: Michelle Rainbow provides an update following government’s latest announcement

The Department for Education published proposals on 12 August 2016 for a new funding model for apprenticeships and further details on the apprenticeship levy. They have stated that the funding will “support people of all ages to gain high-quality skills and experience and help employers to offer more training opportunities and build a skilled workforce.”

The Apprenticeship Growth Partnership (AGP), a group with representatives from North East businesses, the public sector and training providers within the region, was set up by the North East LEP to co-ordinate apprenticeship provision and contribute towards Government’s target of three million starts by 2020.

The AGP welcomes the Government’s latest plans regarding apprenticeships and the apprenticeship levy. The extra support available for small businesses will help make apprenticeships a more attractive proposition for many, and we will work closely with Government to inform the approach for larger organisations.

Apprenticeship graphic

Funding bands will be introduced in order to set limits on the amount of government or digital funds that can be used for a single apprenticeship. The aim is to support quality training while ensuring apprenticeships are affordable for individual employers and deliver value for taxpayers. Every apprenticeship will be placed in a funding band, and employers can negotiate the best price for the training they require.

For more information on the levy, and funding bands, click here.

Have your say

The new system will be introduced on 6 April 2017. A consultation on the plans is now open, and will close on 5 September, with the final proposals due to be confirmed in October 2016.  We have the opportunity, through partners, to provide feedback on the proposals and welcome comments from employers, large and small.

If you have any feedback, or would like further information on the levy, contact: [email protected]