Employer levy will fund training

Linda Stokes outlines what the new levy means to employers at the Greater Manchester Chamber of Commerce business lounge at Oldham College

THE Government's much-heralded Apprenticeship Levy is launched tomorrow and is designed to benefit businesses of all sizes.

The levy will be paid by major employers to fund training for new recruits along with older, existing staff who can be enrolled on apprenticeship programmes.

The Government wants three million new apprenticeships by 2020 along with a better focus on tailored, quality training that suits their employers' specific needs.

The new levy will apply to larger employers with a wages bill of £3 million and above. The levy will be applied at a rate of 0.5 per cent of the employer's wage bill and be paid through PAYE.

Other changes will include a new Digital Apprenticeship Service website offering help including digital vouchers for employers to pay for training, and the creation of The Institute of Apprenticeships led by employers to regulate training.

Oldham College has refocused its own apprenticeship services around the priority skills needed locally and across Greater Manchester.

College staff who work with employers on apprenticeships and recruitment have been highlighting the changes.

Heather Green, college director of apprenticeships and business development; said: "Employers now have the buying-power to select the training organisation that suits them best and negotiate costs. We offer hassle-free, expert services to help employers to find, select and interview people for apprenticeships, and we are focusing on small and medium-sized businesses."

Linda Stokes, the college's employment engagement and recruitment manager, said: "Only 1 per cent of all UK employers will be required to pay the new levy - but many firms can benefit from it."

The Government is also introducing a levy allowance of £15,000 per year, meaning the total amount any eligible employer will need to spend is 0.5 per cent of their pay bill, minus the allowance of £15,000.

Linda added: "Employers now have the freedom to make training decisions that suit their needs.

"This includes using levy funds to retrain existing workers in new skills, even if the employee already has qualifications.

"Employers can also train any individual to start an apprenticeship programme, as long as it is significantly different to their previous qualification."

Employers can choose from two different types of apprenticeship training - called standards and frameworks.

Standards have been developed by employers and cover specific job roles, skills, knowledge and behaviour that an apprentice will need.

Frameworks cover workplace and classroom training but are being phased-out in favour of standards.

An additional £1,000 is available for employers who take on younger 16 to 18 year-old apprentices. Small businesses with less than 50 staff can have 100 per cent of training costs covered if they train a 16 to 18-year-old, or an older 19 to 24-year-old who has formerly been in care or an education, health and care plan run by a local authority.

The new levy will not apply for apprentices who started training programmes before May this year. Previous arrangements will remain.

* To learn more about apprenticeships contact Oldham College on 01761 785 4330 or visit oldham.ac.uk.