What are They and How are They Funded?
Apprenticeship courses are “on-the-job” training courses and encompass a number of subjects. For 16-18 year olds, apprenticeships are 100% funded by the Government (and of course they’re part-funded – 90% – for students of 19 and over!).
To qualify for enrolling on any Government-funded apprenticeship, you must be employed in England (not Wales, Scotland or NI) and in full-time employment in a job role that is related to the subject you’re seeking to study (i.e. if you want to do a Sales & Telesales Apprenticeship you should be in a sales-related job role).
The Government’s Apprenticeship Scheme has been embraced by our community since 2013 by means of an association with Babington, based in Derby. Out of around 500 school leavers in 2013 and 2014, 225 were enrolled on a range of Apprenticeships. Of these, over 90% completed their courses and are in full time worthwhile employment.
Recent Government Initiative
After extensive consultation, the Government has upgraded the Apprenticeship Scheme including a new funding model which came into effect in April 2017. This reform provides a wider range of apprenticeship skills, permits higher levels of study and introduces a new funding policy whereby the cost of training is underpinned by a levy on larger employers. Key changes include:
- Raising the profile of apprenticeships so that they have the same legal status as degrees
- Target of 3 million new apprentices in England by 2020
- Changing the apprentice training courses from ‘Frameworks’ to ‘Standards’
- Including an End-Point Assessment (EPA) to underpin the qualification
- Requiring 20% of apprenticeship training time to be ‘Off the Job’
- Changing the funding level to a band-related system (see below) and removing the age limits
Funding for apprenticeships is achieved at three levels, dependent on the company size:
- Apprenticeship Levy – mandatory payment through HMRC for companies having an employment bill in excess of £3million per annum.
- A 10% Co-investment scheme for SMEs with 50 plus employees but below £3million employment bill.
- Fully funded for smaller businesses with fewer than 50 employees for apprenticeships aged 16 to 18..
- Additional grants are available.
Recommended Apprenticeship Provider
Babington is listed on the Government’s Register of Approved Training Providers (RoATP) for the provision of Apprenticeship courses and we are continuing to work with them.
Following discussions with them during July 2018, we are now pleased to release details of the current range of Apprenticeships, which are considered to best reflect the needs of our Community students, based on past experience:
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The following documents are applicable to all Apprenticeship courses:
Employers: want more information? Got questions? We’ve provided more detail in the section below, or alternatively please download our FAQs sheet above.
Who Pays the Apprenticeship Levy?
The cost of the apprenticeship scheme is paid for by companies having an employment bill in excess of £3million per annum. See summary below of how much this will be from April 2017. Smaller companies do not pay the levy but will contribute 10% of the costs of the apprenticeship training while the Government contributes the remaining 90%.
How Does the Scheme work for SMEs?
Non levy-paying employers will negotiate with an approved Training Provider (e.g. Babington) to determine which courses are appropriate for their apprentices and how much these will cost. Once this is decided, the employer will enter an agreement with the provider whereby they pay 10% of the agreed costs and the provider claims the remaining 90% from the Government fund, up to the maximum banded allowance for the courses – see below. More expensive courses can be taken on but the cost is borne by the employer.
Smaller businesses, those with fewer than 50 employees, can negotiate with the Training Providers in the same way as SMEs but will benefit from 100% funding for the courses within the banded maximum amounts for apprentices aged 16 to 18.
For businesses taking on an apprentice aged 16 to 18 either on an apprenticeship framework or standard will also benefit from an additional £1000 payment from the Government.
How much will an Apprenticeship Course cost?
The new apprenticeship funding system will be made up of 15 funding bands and all existing Apprenticeship Frameworks or Standards have been placed in one of these bands. The upper cost limit of each band is the maximum that the Government will pay for funding any course within that band, including the EPA. The banding structure is as shown in this table:
|Band||Upper Limit||Band||Upper Limit||Band||Upper Limit|
More details of how the banding system works and the transition from Frameworks to Standards can be found in the Government publication ‘Apprenticeship Funding in England from May 2017’.
 A Guide to Apprenticeship Factsheet – www.gov.uk/government/publications/a-guide-to-apprenticeship
 For employers with operations in Scotland, Wales or Northern Ireland, contact the appropriate apprenticeship authority:
Page last updated: 21/07/17