Apprenticeship Levy and Reform
Blackburn College UK PRN No. 10000747
The Apprenticeship Levy has replaced all taxpayer funding of Apprenticeships for both public and private sector companies of all sizes.
If your annual business payroll exceeds £3 million you will pay the Apprenticeship Levy. Full information is available on the Government website.
How we can help
We can help you better understand the levy by offering advice and guidance specifically tailored to your business. Our dedicated team can offer you:
- Information on how your business can benefit from the Levy
- Training Needs Analysis
- Apprentice recruitment support
- Workforce development for your existing staff
Why choose Blackburn College?
- Our dedicated Apprenticeship team can provide full recruitment support
- All Apprentices have access to our industry standard training suites or can be trained on your premises
The Apprenticeship Service (TAS) Digital Account
If you are a small employer employing less than 50 people your apprenticeships would be fully funded by the government for 16-18 year olds and you would be eligible for an incentive of £1000. If you employ over 50 people or your apprentice is aged 19 and over then 5% contribution would be charged and the fee would be expected to be paid in full at the beginning of the apprenticeship.
To enable you to get funding for your apprenticeship you will need to reserve funding through the TAS Digital Account. The apprenticeship service has done a quick video to help you set the account up. To do this you will need to create an account; you will need your PAYE details to set this up fully. Once the account is live you will need to reserve funding for your apprenticeship; please enter the apprenticeship Standard details and the Month expected to start. We will work with you to add the learner details onto the system and once agreed all you need to do is authorise on the account
What funding is available to an employer towards training costs?
The size of the contribution varies depending on the apprenticeship undertaken. If you are a non-Levy payer and you employ less than 50 people 100% of the cost of apprenticeship training will be funded if the apprentice is aged 16–18 years old. If the apprentice is over 19 then you will pay 5% of the costs.
- If your apprentice is 16-18 then you will receive a £1,000 incentive.
- If you are a levy payer and you don’t have enough funds in your account then the apprenticeship fee for that month will be reduced to 5% and the government will fund the remaining 95%.
Please note: Employers are responsible for paying their apprentice(s) wages.
Since April 2018 employers who pay the apprenticeship levy have had the option to fund apprentices in another organisations by making a transfer. Transfers were introduced to give levy-paying employers more flexibility in how they spend their apprenticeship service funds and help larger employers to support smaller employers in taking on apprentices.
Helpful videos
- How to Add Apprentices and Set Up Payments
- Transfer of Levy Funds
- Registering an Account on the Apprenticeship Service
Additional support videos are available on the Education & Skills Funding Agency YouTube channel.
Since April 2018 employers who pay the apprenticeship levy have had the option to fund apprentices in another organisation by making a transfer.
Transfers were introduced to give levy-paying employers more flexibility in how they spend their apprenticeship service funds and help larger employers to support smaller employers in taking on apprentices.
Currently employers can transfer up to 25% of their annual funds to one other employers to pay for apprenticeship training.
- Levy-paying employers who use the apprenticeship service can now see their transfer allowance in their account.
- They have been able to make a transfer to one other organisations from May 2018 the receiving organisation will be able to start adding apprentices from the same date.
- Training providers were then paid for these transfers from June 2018.
- The apprenticeships are approved by the sending employer before payments are made.
- Funds are transferred monthly for the duration of the apprenticeship.
Need more Information?
We can help your business navigate these important changes and ensure you secure the very best training. Contact us on 01254 292500, email business@blackburn.ac.uk.
Benefits of having an apprentice
Research shows the majority of employers said that Apprentices helped them to improve productivity and to be more competitive. They also said that training Apprentices is more cost effective than hiring skilled staff, leading to lower overall training and recruitment costs.
The benefits of apprenticeships are becoming increasingly obvious to more and more businesses. It’s a fact that apprenticeships develop a motivated, skilled and qualified workforce. Businesses that offer apprenticeships view them as beneficial to their long-term development.
Improve your bottom line
Apprentices deliver real returns to your bottom line. In a survey*, the majority of employers said that Apprentices helped them to improve productivity and to be more competitive. They also said that training Apprentices is more cost effective than hiring skilled staff, leading to lower overall training and recruitment costs.
Fill your skill gaps
Apprenticeships deliver skills designed around your business needs. They also help you develop the specialist skills you need to keep pace with the latest technology and working practices in your sector.
Employers in the Populus survey said they relied on their Apprenticeship programmes to provide the skilled workers they need for the future.
Motivate your workforce
Apprentices tend to be eager, motivated, flexible and loyal to the company that invested in them. Remember an Apprentice is with you because they want to be; they have made an informed choice to learn on the job and made a commitment to a specific career.
Long term benefits
Employers have identified a number of long term benefits arising from Apprenticeship training. These include:
- A supply of people with the skills and qualities that businesses require
- A supply of skilled recruits to help businesses grow
- Apprenticeship Frameworks are more practical and job related than other forms of learning
- Apprentices tended to stay and progress within the business
- Employers could support the apprentice with their CPD and career progression which in turn enhances the business
- Teaching apprentices enabled senior staff to consolidate their own knowledge
- According to the British Chambers of Commerce, most employ an apprentice to improve the skills base within their business. They also state that:
- 82% of employers take on apprentices to build the skills capacity within their businesses.
- 75% of apprentice employers say the programme has helped cut recruitment costs. 80% say that apprenticeships will play a bigger part in their future recruitment policy.
- 88% of apprentice employers believe they lead to a more motivated and satisfied workforce, leading to greater loyalty and quality.
- 81% of consumers favour companies that employ apprentices.
- 80% of employers feel that apprenticeships reduce staff turnover.
- 81% of apprentice employers say they make their businesses more productive. The average apprenticeship completer increases business productivity by £214 per week.
How to advertise and recruit an apprentice
Blackburn College has built an excellent reputation for delivering high quality apprenticeships across a variety of sectors. We pride ourselves on our excellent apprenticeship success rates and the work we do with employers and learners in industry. We are constantly working to offer new and exciting career paths by introducing new apprenticeship Standards to meet increasing demand from businesses.
If you are interested in taking on an apprentice, it would be worthwhile contacting the Apprenticeship team to discuss training programmes available and any particular requirements you may have. We will need to check your details covering health and safety in the workplace and equal opportunities as we have to ensure all people undertaking an apprenticeship are in a safe and secure working environment.
Can I get help recruiting a suitable apprentice?
Yes, once we receive a completed vacancy form, we will upload this to our website and the Find an Apprenticeship site. The Apprenticeship team manage the applications and invite applicants to college to undertake an initial assessment and interview.
We will provide them with more information about the your job role and answer any questions they may have. We will then send applicants CVs out to you for review and shortlist, when you have made your selection we will arrange interviews at a date and time to suit your business. We offer this as a free service for those employers that want to us to support recruitment of their apprentice, all we ask is that when we successfully recruit for you that you us as your apprentices training provider.
Please contact the Apprenticeship team on 01254 292500 or apprenticeships@blackburn.ac.uk for any advice or support in completing the below vacancy form.
Useful links and documents
- Traineeship Employer Guide
- An Employer's Guide to Apprenticeships
- An Employer's Guide to Higher Apprenticeships
- Apprenticeships Available
- Employer Safeguarding Leaflet
Employer Funding
What funding is available to an employer towards training costs?
Funding varies depending on whether your business is an Apprenticeship Levy Payer – If you are, then you can use your Levy money to fund the Apprenticeship training through your Digital Apprenticeship Service Account (DAS).
If you don’t pay the levy then you may be eligible for full funding or be asked to make a 5% contribution towards the cost of the training. For Standards you will need to reserve funding from The Apprenticeship Service through the Digital Account for further details on how to set this up please see apprenticeship levy section at the top of this page.
To find out more about the funding available, please refer to the apprenticeship levy section at the top of this page or contact us directly on 01254 29500 and we’ll be happy to advise you.
Incentives
The government also has an incentive payment of £1000 that you may be able to access for apprentices aged 16-18 and 19- to 24-year-olds who were in care or have an education and health care plan.
Get in Touch
To discuss your specific requirements for training courses or to take on an Apprentice email business@blackburn.ac.uk or call 01254 292500.