Reforms to the Apprenticeship Levy Announced
An overview of the changes from Lisa Williams, Education and Training Manager at BFM
On 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 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 for businesses in their supply chain, boosting the number able to benefit from high-quality apprenticeship training.
Current guidance states that employers who have unused apprenticeship funds can find employers who want to receive a transfer in several ways such as working with employers in your supply chain, getting in touch with employers in your industry or an Apprenticeship Training Agency (ATA) and working with regional partners.
Employers who pay the levy can make transfers from their apprenticeship account to as many employers as they choose. This is done through the government’s Apprenticeship Service and is relatively straight forward.
A further £5 million was announced for the Institute for Apprenticeships to introduce new standards and updating existing ones so that more courses can be offered – meaning more choice for those considering their training options. Their aim is to ensure standards approved prior to the Institute began are high quality, and support the delivery of 500 apprenticeship standards by the end of next year.
This will include a review of the Level 2 Furniture Manufacturer Standard which is expected to take place over the next 12 months. It is expected that the current standard will be required to be split into a number of specific standards, for example General Furniture Manufacturer, Bed Maker and Wood Machinist. If you would like to get involved with the review please contact the BFM today.
Are you a levy paying employer with unspent funds? Put them to good use by supporting other employers in the industry recruit and train apprentices. Contact BFM today for advice on apprenticeships.