The government has made a commitment to get employers to deliver 3 million apprenticeship starts by May 2020.
At the same time as making this bold commitment, it has made some major changes to the structure of apprenticeships, and to the way that they are funded.
The reforms to apprenticeships are in three main areas:
Changing the apprenticeship product, by moving away from the old frameworks to new employer-designed standards based apprenticeships.
The introduction of a change to the way that employers access apprenticeship funding. This is now done via the ‘Apprenticeship Service’, online. The intention is that all employers will be using the Apprenticeship Service by May 2019
The introduction of a large employer levy in 2017
These reforms are having a dramatic effect in the way that the apprenticeship and skills ‘market’ operates. It is certainly making employers think differently in terms of their approach to the recruitment and training and development of their staff.
Since April 2017, employers with payroll costs of £3m or over, are already paying 0.5% of their payroll as an apprenticeship levy contribution . They can use their levy contribution, as funding for the training and assessment of apprentices.
Allen Apprenticeships and Skills can offer a bespoke service to all employers, whatever their size, by outlining in detail the impact that these reforms to apprenticeships will have on them, and how they should respond.
These reforms to apprenticeships give excellent opportunities to employers, to introduce or grow an apprenticeship programme. We can guide you on your journey!