The Apprenticeship Levy – Information for Schools

From April 2017 the way apprenticeships are funded is changing as part of a series of wider reforms to the apprenticeship system in England. Employers with a pay bill of more than £3m will be required to pay an apprenticeship levy. In England, employers who pay the levy will be able to access funding for apprenticeship training and assessment via a new Digital Apprenticeship Service.

Available funding can be used to meet the cost of apprenticeship training and assessment against an approved apprenticeship framework or standard. This can be for both existing employees as well as new starters. The training provider must be on the Register of Apprenticeship Training Providers.

 

Who pays the levy?

Community schools (including voluntary controlled schools)

Local authorities will typically be responsible for paying the levy in community schools they maintain, where the local authority employs the staff and pays National Insurance contributions (NICs). Such staff will be counted as part of the local authority’s payroll.  The cost of the levy will be passed on to schools in the same way that employer National Insurance and superannuation is.  Where the local authority is the employer, schools will have access to funding for apprenticeship training, via the local authority’s Digital Apprenticeship Service account. 

 

Foundation and voluntary aided schools

Foundation and voluntary aided schools typically employ their own staff so they will be responsible for paying the levy.

 

Standalone academies

The Trusts of standalone academies will typically be responsible for paying the levy where they are the employer responsible for paying Class 1 secondary NICs.

 

Academies that are part of multi-academy trusts

Multi-academy trusts (MATs) generally employ the staff in their academies, and will be responsible for paying the levy.

 

Schools that do not pay the levy

The government will pay 90% of the cost of apprenticeship training and assessment for:

• employers that have a pay bill of less than £3m and
• those that have used all the funds in their digital account.

The employer will be required to pay the remaining 10%.

 

What types of apprenticeship can be used by schools?

There are numerous types of apprenticeship already available to use for roles in schools, these include:

• Teaching Assistant
• PE in School Sports
• Early Years Educator
• Business Administration
• Management & Leadership
• IT
• Team Leader
• Facilities Management
• Customer Service
• Marketing

New school specific apprenticeship standards are also being trail-blazed at the moment, such as a degree level QTS Teaching Apprenticeship and School Business Management.

As part of the reforms being introduced with the Apprenticeship Levy, apprenticeships will now be available to current employees who can use them as a form of continuous professional development and to learn new skills. Previously, apprenticeships were not available to those who already had a certificate of higher education or a degree, or would not be funded by government for those aged 24+. These rules will change with the introduction of the levy – any employee can now undertake an apprenticeship, providing that what they do is classed as new learning or is at a higher subject level than they have completed previously (for example, somebody who has a Level 2 Teaching Assistant qualification can then do a Level 3 Teaching Assistant apprenticeship). Levy paying employers will be able to use levy funds to pay for this training.

Of course apprenticeships will also remain as a route into employment for young people seeking to begin their career through vocational training.

 

Apprenticeship FAQs

If a current employee undertakes an apprenticeship, will that mean they have to be paid an apprentice’s wage?

No, to undertake an apprenticeship you simply must be in employment for a minimum of 30 hours a week and your salary and terms and conditions of employment are not affected in any way.

If I employ an apprentice or have an employee undertake an apprenticeship, will they have to attend college?

This depends – there are a number of different training providers who deliver apprenticeships and their delivery method may all be done in the workplace, or may require classroom learning at a college or training centre on day/block release. A stipulation of new apprenticeship standards is that the apprentice should spend 20% of their working hours in off the job learning, and time spent with the training provider/college contributes to that.

Can I spend Levy funds on non-apprenticeship training?

No, levy funds can only be used for purchasing apprenticeship training provided by providers who are on the Register of Apprenticeship Training Providers, and on end point assessments, which will be another stipulation of the new apprenticeship standards. Levy funds cannot be used for an apprentice’s salary or other costs such as travelling to college.

What is an apprenticeship standard?

For a number of years now, apprenticeships have been a framework of qualifications; typically an NVQ, technical certificate and functional skills if required. These are now being replaced by standards, which have been trail-blazed by groups of employers and therefore are more up to date and specific to the needs of employers. Hundreds of occupations will have their own Apprenticeship Standard linked to a specific occupational level. Some standards are already available to be delivered, and the Government aim to completely phase out frameworks and replace them all with standards by 2020.

How do I access my levy funds?

The levy funds are a digital voucher and managed through a database called the Digital Apprenticeship Service (DAS). The DAS is controlled centrally by the Apprenticeship Hub – so all you need to do when your school engages with a training provider to deliver an apprenticeship is let the Hub know (or get your training provider to contact us) and we will set up the payments for your apprentice to the provider from the DAS.

 

Further help, advice and support

The Apprenticeship Hub at Warwickshire County Council will be happy to support you and your school with advice and information about apprenticeships and the apprenticeship levy. We can help you to choose a training provider, promote your apprenticeship vacancies, and for those schools who are part of the WCC levy, enable you to pay for apprenticeship training through the Digital Apprenticeship Service.

To contact the Apprenticeship Hub, call 01926 418040 or email apprentice@warwickshire.gov.uk.