Non-levy paying employers will share the cost of training and assessing their apprentices with Government – this is called ‘co-investment’. From May 2017, these organisations will pay 10% towards to the cost of apprenticeship training and government will pay the rest (90%), up to the funding band maximum.

The Education and Skills Funding Agency (ESFA) has  issued a statement noting that it had carefully considered the applications made in response to the recent procurement for apprenticeship training provision for non-levy-paying employers. This procurement was markedly oversubscribed, a sign of the significant level of interest from the training provider market in the apprenticeship reforms. In response, ESFA intends to pause the current competition. This will allow EFSA to review its approach to ensure that its achieve the right balance between stability of supply and promoting competition and choice for employers. It is important that ESFA fully consider how best to achieve these outcomes in a way that achieves the best value for employers and apprentices as we move to a fully employer-led system.

EFSA will undertake further engagement with the market to clarify its approach, and ensure that this meets the Government’s wider objectives of securing stability in the market, good sectoral and geographical coverage of provision, and a market which meets the skills needs of employers. We will issue further guidance shortly.

In order to maintain stability in the system through the start of the next academic year, in the interim period EFSA will extend existing contracts held by all current providers until the end of December 2017. To maintain its quality standards, current providers with extended contracts will be able to undertake new starts on those contracts provided they are on the Register of Apprenticeship Training Providers. The ESFA will notify providers of specific arrangements shortly so that amended contracts are in place ahead of 1 May. This will not affect training provision for existing learners. Extending existing providers contracts means employers can be confident in taking on new apprentices without disruption over the months ahead.

The register of Apprenticeship Training Providers includes a limited number of charities and NHS Foundation Trusts as employer providers (levy paying employers who are permitted to provide training to their own staff or to apprentices in their connected companies – they cannot deliver training to other unconnected organisations). CTG would welcome feedback from any charities registering to become employer providers on their experiences so far. Contact us at info@charitytaxgroup.org.uk.