Government updates apprenticeship reform plans

Date added: 31/10/2016

The government has updated its apprenticeship reform plans with further information on how apprenticeship funding for employers will work, including details of funding bands and the apprenticeship levy.

The new policy paper explains how government will fund apprenticeship training in England from May 2017.

The main measures confirmed include:

• A longer time for employers to spend funds in their digital account. Funds will be now available for 24 months before they expire, an increase from government’s original proposal of 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, to help the government develop this system so that it works for employers
• More funding for STEM apprenticeship frameworks and higher pricing of apprenticeship standards to support improved quality, and providing greater flexibility to train those with prior qualifications

Support for younger apprentices and disadvantaged people:

• 100% of training costs will be paid by government for employers with fewer than 50 employees who take on apprentices aged 16 to 18 years old. This will also apply to smaller employers who take on 19- to 24-year-olds who were in care or 19- to 24-year-olds with an education and health care plan
• £1,000 each from 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
• 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
• Providers that train apprentices from the most deprived areas on apprenticeship frameworks will continue to receive additional funding from government. The government says more than £60 million will be invested in supporting the training of apprentices from the poorest areas in the country, equalling around one third of all apprentices