The Apprenticeship Levy

The Government introduced the Apprenticeship Levy on 6 April 2017. The levy requires all employers operating in the UK with a pay roll over £3 million each year, to invest in apprenticeships. All employers, whether eligible to contribute to the levy or not, will have access to funding for apprenticeship training from 1 May 2017.

With this comes a new range of reformed apprenticeship standards. These involve formal End-Point Assessment (EPA) by an independent Apprenticeship Assessment Organisation (AAO). AAOs are currently formally approved (licensed) by the Skills Funding Agency (SFA). See the Government’s Register of Apprentice Assessment Organisations (RoAAO).

Click here for the latest Government guidelines for employers on apprenticeship funding and how paying into the levy and/or accessing funding from 1 May 2017 will work.

We are already actively working in partnership with training providers employers to ensure effective assessments are available from April 2017.

Through NOCN, preparation for the new apprenticeships starts with the ‘Apprenticeship Readiness Assessment’ to test how prepared training providers and employers are for the implementation of the reforms. This takes employers and training providers through ten critical lines of enquiry to help them plan and prioritise for the implementation.

Key challenges for employers to consider:

  • Do you understand the implications for your business and have worked out how you will address these?
  • What range of jobs do you have and do you know the range of Apprenticeship Standards you can draw on?
  • Is there an existing apprenticeship programme in place in the organisation and how does need to change with the introduction of the Levy?
  • Are your managers and supervisors ready to support and mentor apprentices?
  • Do you have systems in place, with monitoring reports, for apprenticeships and claiming back the Levy?

Training providers also need to ensure they are ready and have the resources to support the 20% training component of each apprenticeship. AAOs need to ensure that they have all the systems and support in place for the End-Point Assessments.

Read more in our blog Apprenticeship Levy Readiness Toolkit for Employers

Want to know more?

  • NOCN is offering free, informal apprenticeship readiness assessment sessions for college leaders, private training providers and employers.