Government announces updated apprenticeships funding plans

Government announces updated apprenticeships funding plans

Wednesday, 26th of October

Government announces updated apprenticeships funding plans

The plans were largely welcomed by business and skills groups following stakeholder consultation ahead of the launch of the Levy in April 2017.

The Government says the aim of the £2.5bn apprenticeships plan is to boost the number of people of all ages able to gain high-quality skills and experience, and to improve the overall skills of the workforce

This announcement included what the Labour Party are calling a ‘U-turn’ on proposed cuts to apprenticeship funding for disadvantaged 16-18 year olds which will now be reversed and funding protected.

The key measures announced by the Government include more support for younger apprentices and disadvantaged young people including £1,000 each from the Government to employers and training providers who take on 16- to 18-year-olds and 19- to 24-year-olds who were in care or who have an education and health care plan.

Additionally, training providers that train 16- to 18-year-olds on apprenticeship frameworks will be given an additional cash payment equal to 20% of the funding band maximum, in order to help them to adapt to the new funding model.

More details on how the Levy will effect employers was also released. This included 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 formed to help Government develop this system so that it works for employers.

Employers are now awaiting the final implementation plan for the Levy to ensure a smooth transition ahead of the Levy going live in 2017.

More information on the apprenticeship funding plans can be found here:

https://www.gov.uk/government/publications/apprenticeship-funding-from-may-2017

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