The introduction of the Apprenticeship Levy on April 6th is set to create monumental changes in the future of Apprenticeships. From this date onwards businesses with a payroll of over £3 million will be required to invest in apprenticeships. The Apprenticeship Levy will see a co-investment and development of vocational skills designed to significantly increase the quantity and quality of Apprenticeships – the target set at 3 million apprentices by 2020.
Employers which fall into this bracket will make a 10% contribution to the cost of training and the government will make up the remaining 90%.
The funding will contribute to two different types of apprenticeships: 1) Apprenticeship Standards, covering specific occupations and setting out core skills. 2) Apprenticeship Frameworks, a series of work related vocational and professional qualifications, with work place and classroom training.
Benchmark Managing Director Louisa Harrison-Walker commented:
“Not all employers are aware that while someone is studying , as long as they are under 25 they no longer have to pay class1 National Insurance, which on an £18,000 salary is roughly a £1,400 saving. So for companies not affected by the levy this is still a good reason to use the apprenticeship framework to upskill existing employers as they will also get the National Insurance break.
With 87% of businesses in the Sheffield City Region being micro employers of 9 or less, the majority of organisations won’t be affected by the levy, but could benefit from the opportunity to upskill existing work forces with higher level apprenticeships.”
Andrew Hartley, Business Development Director, The Sheffield College, said: “Recruiting apprentices is advantageous for large, medium and small employers as they can mold new talent to their business needs and get the skills they need for growth. We would encourage businesses of all sizes to get in touch with us to find out how they can benefit from apprenticeships and the levy.”
The Sheffield College – which has a £321 million economic impact on the city annually – works with 850 employers to deliver apprenticeship programmes in a wide range of industry sectors for more than 2,000 apprentices. Visit The Sheffield College website.