The government set aside new funding to drive home 2020 Apprenticeship target
In his speech on the 1st October 2018 Phillip Hammond, Chancellor of the Exchequer made it clear that Apprenticeship and employer support are very much at the heart of the Governments focus. The announced package of reforms will help ensure the Apprenticeship Levy is providing people with the skills they need to succeed.
These changes have been set out to provide flexibility for businesses so they can take full advantage of the benefits of employing apprentices, and to help as many people as possible find the right training to equip them for the new economy.
An extra £90 million of government funding will enable employers to invest a quarter of their apprenticeship funds on people working with businesses in their supply chain – boosting the number able to benefit from high-quality apprenticeship training.
Will your business be leading the way on transfers?
If you have small businesses within your supply chain that would like to take advantage of having an Apprentice but are not in a financial position to afford the training costs. You can now set aside a maximum of 25% of your unspent Levy fund to transfer to them, and transferred funds will be used to pay for the training and assessment cost of the Apprenticeships agreed with the receiving employer.
It was also announced that a further five million pounds of funding for The Institute for Apprenticeships, which will work in-line with their Faster and better campaign to help ensure that they can meet the 20/21 target. It will mean all Apprenticeship frameworks will all be moved to Apprenticeship Standards. Producing more choice for those businesses considering their training options, and any future training will be set to the same higher-quality as Apprenticeship standards.
The Government has been working closely with employers and their trailblazer counterparts to ensure the Apprenticeship levy works across all sectors, for all employers who are at the heart of delivering this new first-rate level of training.
Over the following weeks after the speech, the Government will sit down with these employers with the hopes of gaining their views on the Apprenticeship Levy after 2020, including their hopes and fears. As always the Government has set this date, to ensure they support the development of a skilled workforces employers will need in an ever-changing and evolving economy.
Is the Apprenticeship levy letting businesses down?
It has been noted the Apprenticeships starts have been down year on year over the last 12 months, and this is not down to the apprenticeship levy 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 the previous year.
Back in March 2018, the Government started to establish a National Retraining Scheme. Working with union leaders to set to do so in the current Parliament, this is to support adults across the country and equip the workforce with the skills needed for the new economy. While this scheme is being developed, the government will also be funding additional projects including £30m to test the use of AI and other innovative Educational technologies.
With many of the union members joining with the goal of “ensure people are given every opportunity to succeed in this new economy, and how British firms can be supported to create better higher-paid jobs”.
Contact our Apprenticeship Levy team today with any questions you might have about how to integrate Apprenticeships into your business, contact us on 08007832545.