Apprenticeship reforms

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What’s changing? What will it mean for you and your business?

The government’s apprenticeship reforms are coming to a workplace near you soon.

1. National insurance: From April 2016, employers will no longer have to pay National Insurance contributions for any apprentice under the age of 25.

2. The Apprenticeship Levy: From April 2017 all employers that have a wage bill in excess of £3m will pay an apprenticeship levy set at 0.5% of an employer’s pay bill. Each eligible employer will receive an allowance of £15,000 to offset against their levy payment. By 2019–20, the levy is expected to raise £3 billion in the UK. The introduction of the apprenticeship levy is likely to lead to significantly increased demand from employers wanting to engage with apprenticeships. Contact us to help with your recruitment needs.

3. Public sector: A new Enterprise Bill will seek to introduce statutory targets for public sector organisations. Those with a workforce of 250 or more will have at least 2.3% of their workforce employed as apprentices

4. A new governance body for employers: An independent and employer-led body, the Institute for Apprenticeships, will be set up by April 2017. It will regulate the quality of apprenticeships within the context of reaching three million starts in 2020.

5. Funding: The Apprenticeship Grant for Employers (AGE) currently provides £1,500 of funding for small businesses to support each of their first five apprentices aged 16–24 working towards apprenticeship frameworks. This is being extended until the end of the 2016/17 academic year, to provide transitional support until the new levy is in place.

Are you ready?

If you need help understanding the apprenticeship reforms, what the changes mean and how we can support your apprentice recruitment, we offer free advice.