Final apprenticeship levy details: what your business needs to know


We are encouraging all telecoms companies to prepare for the April 2017 apprenticeship levy deadline, following the government’s confirmation of the final details last week.

What is the apprenticeship levy?

Launched to fund three million places for apprentices by 2020, the levy will begin from 6th  April 2017 and will require employers with a wage will bill of over £3m to contribute at a rate of 0.5%. Following its launch, and a period of consultation, the final plans have now been revealed.

What are the updates you should know about? 

  • Employers not eligible to pay will receive funding towards the costs of training an apprentice.
  • The government will provide an additional 20% payment to train 16 – 18 year olds while keeping a ring-fenced amount of £60m to increase funding in disadvantaged areas.
  • For those with less than 50 employees, 100% of the training costs will be paid by the government if taking on apprentices between the ages of 16 – 18.
  • The same will apply to smaller employers taking on 19 – 24 year olds in care, or with an education and health care plan.
  • Employers agreeing to train 16 – 18 year olds on apprenticeship frameworks will be offered an additional payment, equal to 20% of the funding band maximum, to help them adapt to the new funding model.
  • The government has increased the time businesses have to spend their funds from 18 to 24 months.
  • Businesses will now also be able to transfer their digital funds to other employers in their supply chain or sector in 2018.

What is the ITP’s advice?

Following the launch of the levy earlier in the year, many businesses have been anxiously waiting to learn the final details and understand how this will impact their business. It’s good news for smaller organisations, with access to more funding than we had originally anticipated. We have been running an apprenticeship scheme for the industry for the past three years, and have seen the benefits apprentices can bring to grow new talent within an organisation. We would encourage all telecoms companies, levy paying or not, to get prepared now in order to meet the April 2017 deadline.

We are offering an exclusive consultancy service for the telecoms industry to help businesses get ready for, and understand, the implications of the levy before April 2017. The ITP has been running the only telecoms apprenticeship scheme of its kind since 2013 creating more than 60 roles during that time.

For more information, please visit our new apprenticeship site

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