The government has set a target for 3 million apprenticeships to start in England by 2020. To support this goal, a series of changes in the way apprenticeships work have been announced.
From April 2017, all employers with a wage bill of more than £3 million will pay an apprenticeship levy equal to 0.5% of their wage bill. The money generated will be used by these employers to pay for their apprenticeship training.
How you will pay for apprenticeship training as a non-levy payer
From May 2017, the government will pay 90% of the cost of your apprentices’ training and assessments. You will then pay the extra 10%.
Or, if your organisation has less than 50 employees and you recruit an apprentice aged 16-18, there will be no cost to you for the apprenticeship training and assessments. It is fully funded by the government.
The Digital Apprenticeship Service
The Digital Apprenticeship Service (DAS) is a new online portal for employers to manage their levy payments, access funds and search for training providers. Levy payers will have access to this account from February 2017. Non-levy payers will not be required to use the DAS to pay for apprenticeship training until a later date (to be announced).