Totton College offers a range of services that enable employers and employees to develop new skills through work-related learning.
Apprenticeships can be used to upskill existing staff as part of their continued professional development. This is a great opportunity for all employers, but is particularly cost-effective for levy payment employers who don’t have the need for new apprentices, but have the need to address skills shortages, retain talent and develop their workforce.
Funding for Apprenticeships
From April 2017, government funding for apprenticeships has changed. The Apprenticeship Levy will be paid by large employers to build and maintain their workforce. The Government’s aspiration, is to improve the skills of the workforce by encouraging more people to undertake an apprenticeship. By 2020, the government wants to increase the number of apprenticeships to 3 million.
All employers with a payroll bill of over £3 million, on which there is a liability to pay secondary Class 1 National Insurance Contributions (NICs), will be required to pay the Apprenticeship Levy. There will be no exemptions. From April 2016 organisations will no longer be required to pay National Insurance contributions (NIC) for apprentices aged under 25.
The Government will apply a 10% top-up to the funds you have for spending on apprenticeship training in England. That means for every £1 that enters your digital account to spend in England on apprenticeship training, you get £1.10.
Below are two worked examples:
Example 1: Levy paying employer
Employer of 250 employees, each with a gross salary of £20,000 would pay:
Pay bill: 250 x £20,000 = £5,000,000
Levy sum: 0.5% x £5,000,000 = £25,000
Allowance: £25,000 – £15,000 = £10,000 annual levy payment
Example 2: Non-levy paying employer
Employer of 100 employees, each with a gross salary of £20,000 would pay:
Pay bill: 100 x £20,000 = £2,000,000
Levy sum: 0.5% x £2,000,000 = £10,000
Allowance: £10,000 – £15,000 = £0 annual levy payment
Apprenticeships for SMEs
Employers with a payroll bill of less than £3 million will not pay the levy. The government will provide financial support for non-levy paying employers to take on apprenticeships, but these employers will be expected to make a small financial contribution of 10% of the cost of training and assessment in partnership with the Government.
How do I access the Apprenticeship Levy funding?
Funds will be accessed through a new digital apprenticeship service account. You will need to register to create an account, and link it to your PAYE schemes. You will be able to see funds appear in your digital account monthly. You will be able to use this to pay for training and assessment for apprentices in England and all levy payers will use ‘Standards’ for those Apprenticeship Frameworks that are no longer funded and called ‘switched off’. Standards have to have an end assessment point with another organisation and will have to pay for out of the same digital pot.
Please note: The levy funds will expire 24 months after they enter an employer’s digital apprenticeship service account unless they are spent on apprenticeship training. This will also apply to any top-ups in the account. Expiration will take place automatically, but your digital apprenticeship service account will inform you in good time when any funds are due to expire so that the funds can be spent.
Employer services from Totton College
Totton College offers a range of services that enable employers and employees to develop new skills through work-related learning. Our services include:
Business training needs analysis
As part of our commitment to smaller employers we offer a free training needs analysis to enable you to assess potential skills gaps in your company, and provide you with appropriate and cost-effective training solutions.
We offer a variety of accredited courses and professional training for those who wish to upskill themselves in the workplace, or are looking to expand their career opportunities. These range from one-day courses to part-time training across an academic year, and include industry-relevant VRQs and diplomas.
We develop bespoke training programmes to meet employers’ individual needs, and help you or your employees to gain new skills and qualifications. This includes industry-specific training for areas from the automotive industry to hair and beauty clients, as well as tailored courses in Photoshop, digital marketing and IT. These can be delivered onsite or at Totton College.
See more about our employer services here.
For more information about the levy, or to learn more about our other services, contact us: