Changes to apprenticeships

From April 2017, the Government introduced changes to apprenticeships that will affect all businesses.

Employers are now expected to take on significantly more responsibility for apprenticeships and apprenticeship Standards
will replace existing apprenticeship Frameworks by 2020.

Do you understand what these changes mean for your business?

TrAC can help.

Apprenticeship levy

Employers with a payroll of more than £3m per annum will pay 0.5% of their wage bill to the Government Apprenticeship Levy (alongside the existing 0.35% CITB levy) to fund apprenticeship training and End Point Assessment – Government will add 10% to these contributions.

If an employer exceeds their levy funding pot, they will then have to co-invest 10% of the cost of any additional apprenticeship training.

Unused funds will expire after 2 years.

What about non-levy payers?

Employers of more than 50 people who do not pay the levy, will have to pay 10% of the cost of apprenticeship training and End Point Assessment whilst those with fewer than 50 employees will not need to pay for training, for apprentices aged between 16 to 18 or 19 to 24 for care leavers or those with an EHC Plan.

Find out about our apprenticeship levy projection tool click here

Structural changes to apprenticeships

  • Existing apprenticeship frameworks will be phased out by 2020, replaced by employer driven Apprenticeship Standards and End Point Assessments.

  • Groups of employers are responsible for driving the development of the new standards.

  • All employers will have to take control of apprenticeship funding – apprenticeships will be allocated to one of 15 funding bands and training which costs above the allocated band will be paid in full by the employer.

  • There are four main types of apprenticeship - intermediate, advanced, higher and degree level.

  • Employers will purchase apprenticeship training and End Point Assessment from an approved provider list and will need to negotiate to get the best price for delivery.

  • Employers will decide when an apprentice is ready for End Point Assessment, worth 20% of the overall apprenticeship cost.  If the apprentice fails, the employer will have to pay 100% of the cost of any re-training and additional end point assessment.

  • Employers will need to guarantee employment for the full duration of apprenticeship training and assessment AND all of this must be linked to a ‘real job’ on completion.  The only exception to this rule is for apprentices working with Apprenticeship Training Agencies or Shared Apprenticeship Schemes, such as TrAC.

  • An incentive payment will be paid to those who employ 16 to 18 year olds or 19 to 24 year olds who are care leavers or have an EHC plan.



TrAC can help

Employers need to understand the opportunities these changes present and their legal responsibilities.

Alternatively, they can use TrAC, a Top 100 Apprenticeship Employer 2016.  We take on the employment responsibilities and the time and administrative costs associated with recruiting, employing, motivating and managing apprentices and their training, so that you don’t have to. 

A TrAC fixed term placement solution allows you to manage your risk on short term projects whilst still giving apprentices the vital work experience they need on projects they wouldn’t otherwise be able to work on.

Contact Info
Building 262B, Scottow Enterprise Park, Lamas Road, Badersfield, Scottow, NR10 5FB
01603 737739
Follow Us
Stay Connected
Subscribe to our newsletter

Privacy Policy