1st October 2018 the Government announced a package of reforms to ensure the Apprenticeship Levy provides people with the skills they need to succeed.

The changes are aimed at providing more flexibility for businesses to take full advantage of the benefits of Apprenticeships and to help people get the best training.

Announced was an extra £90 million of government funding that will enable employers to invest a quarter of their Apprenticeship levy funds into other businesses, which will boost the number of people who will benefit from high-quality Apprenticeship Training.

Chancellor Philip Hammond also hailed the “flexibility” of increasing the Apprenticeship Levy transfers, from levy-paying employers being about to transfer 10% of funds to 25% to smaller organisations from April 2019.

Mr. Hammond said the government had “heard the concerns about how the Apprenticeship Levy is working” and will “engage with business on our plans for the long-term operation of the levy” after 2020.

The government has worked closely with business groups to ensure the Apprenticeship Levy works for employers who are at the heart of delivering this move to world-leading training.

The Apprenticeship Levy has been making good progress, with 1.41 million apprenticeships started since May 2015. There were 119,500 starts reported in the first three-quarters of 2017/18, more than ten times higher than the same period in the previous year.

Also, in coming weeks, the government will set out a process to seek views on the operation of the levy after 2020 to ensure it supports the development of the skilled workforce businesses need for the new economy.

A further £5 million for the Institute for Apprenticeships was also announced to continue the introduction of the new higher quality Standards and to update existing ones so that more courses can be offered, allowing more training choices. The government has also committed to introducing all-new apprenticeship Standards in time for August 2020, the start of the academic year, rather than “by 2020” as previously stated.

 

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