In a written ministerial statement, Secretary of State for Education Justine Greening has set out the key features of the final funding policy for the Apprenticeship Levy, to come into force from May 2017.

Among the announced features is the extension of the deadline for using funds in an organisation’s digital account from 18 months to 24 months. This is a positive development, with CTG having called for this extension at the very least, if the Government could not delay implementation of the Levy. Hopefully, this will give more charities the time necessary to put in place apprenticeship schemes and benefit from the use of their Levy funds, to avoid the Levy simply being another payroll tax.

The Government’s commitment to introducing the ability for employers to transfer digital funds to other employers in their supply chains, or sector in 2018 is also welcome, and CTG will continue to call for this to be made workable as soon as possible. This will allow charities to  transfer unused levy funds to other charities with greater capacity for providing apprenticeships, and will hopefully serve to allay concerns that donated funds might be diverted from their intended charitable purpose.

Further key features include:

• Higher funding for STEM apprenticeship frameworks and higher pricing of apprenticeship standards to support improved quality, and greater flexibility to train those with prior qualifications

• 90 per cent contribution from the Government to the cost of training for employers that will not pay the levy

• 100 per cent contribution from the Government to the cost of training for small employers that will not pay the levy and who take on apprentices who are 16 to 18 years old, 19 to 24 year-old care leavers or 19 to 24 year-olds with an Education and Health Care Plan

• £1,000 each from government to employers and training providers when they take on 16 to 18 year-olds, 19 to 24 year-olds who were in care or who have an Education and Health Care Plan

• Help for training providers to adapt to the new, simpler funding model through an additional cash payment equal to 20 per cent of the funding band maximum where they train 16 to 18 year-olds on frameworks, and

• A simplified version of the current system of support for people from disadvantaged areas to ensure the opportunity to undertake an apprenticeship is open to everyone, no matter where in England they live, their background or family circumstances

For more information on the Apprenticeship Levy and its implications for your charity, click here.