An apprenticeship is a way of funding the development and upskilling of an organisation’s workforce to support career progression. Apprenticeships are designed to reflect the changing needs of employers, learners and providers, with the new apprenticeship standards providing employer designed occupationally specific apprenticeships.
Apprenticeships are not just for new starters or those about to enter the workplace, they are also about upskilling and supporting your existing workforce. Now and in the future, any individual can train through an apprenticeship, where significant new learning is required.
Apprentices complete their apprenticeship with the right skills for the role the organisation needs. Apprenticeships play a key role in the retention of employees as they are more likely to remain employed with the employer who invests in them.
As employers you will experience tangible improvements to your business and workforce as a result of apprenticeships. Apprenticeships will address skills gaps in the current market and create real benefits for the wider economy.
A key Government objective is to utilise employers to develop apprenticeship standards to drive the quality of apprenticeships and ensure that anyone completing is fully competent in their occupation. The new apprenticeship standards give employers the ability to design what goes into the apprenticeship in terms of the skills, knowledge and behaviours needed for roles.
The new apprenticeships are transitioning away from previous frameworks to standards by 2020. Standards are developed by employers. CIM is currently working with a group of more than ten employers consisting of large organisations and SMEs to develop the apprenticeship standards for marketing.
The role of the employer group is to determine which job roles should be covered by the standard/s and determine the technical, knowledge and behavioural competencies required for those occupations.
The apprenticeship levy started on 6 April 2017, at a rate of 0.5% of pay bill, paid through PAYE. Only employers with a pay bill in excess of £3m will pay. Eligible employers will pay 0.5 of their total pay bill, which will be taken via HMRC and the amount from their England based employees placed in a digital account to be spent on apprenticeships in England.
The total levy payment is calculated on the total salary bill but there is an allowance which covers the first £15,000. Actual payments are based on the total sum minus the £15,000 allowance.
Paybill: = £5,400,000
Levy sum: 0.5% x £5,400,000 = £27,000
Allowance: £27,000 - £15,000 = £12,000 payment liability
Plus, they will receive £1,000 10% top-up
The levy is a rolling payment – paid monthly e.g. if you have annual levy bill of £12,000 – you will pay £1,000 per month + £100 government top-up added per month. Payments are calculated and paid on a monthly basis in line with your actual pay bill – so may vary throughout the year.
10% Top Up
Funds available on a 24 month rolling basis – if you don’t spend it you lose it after that time period.
Employers need to allow and commit to the employee having 20% of their time for “off the job training” – this doesn’t mean they have to be away from the workplace or in a classroom and can be done flexibly to suit the apprentice and employer. This might can come in the form of:
- Formal Training with you or your training provider
- Independent Study during work time
- Coaching or Mentoring
- Networking Events
- Online discussions/forums
- Attending meetings
- One-to-one work with a specialist
Employers should commission a Training provider who is on the Register of Apprentice Training Provider to develop a training programme which incorporates the skill and requirements outlined in the standard, they will also be able to support, track and record the off the job training requirement with you.
A good training provider can help with recruitment of apprenticeships as part of their service to you – plus you can advertise for apprentices free. Find out more here.
Apprentices provide opportunities to find new talent – and you can also utilise traineeships – government funded work experience programme where you source new talent.