The Government is making a number of improvements to apprenticeships in England, including how they are funded.
From 6 April 2017, employers operating in the UK with an annual pay bill of more than £3 million (and some connected companies and charities with pay bills less than this amount) will pay the apprenticeship levy.
A useful guide on what this could mean to you can be found here.
For voluntary-aided schools, foundation schools, free schools and academies, the governing body is the employer. Each governing body will be entitled to an allowance of £15,000.
For other maintained schools, the local authority is the employer. The local authority remains legally responsible for payment of the Apprenticeship Levy for schools under their control, even if they’ve delegated responsibility for payroll including payment of Class 1 secondary NICs. Each local authority has an annual allowance of £15,000.
The employer for faith schools will be the local authority if the school is voluntary-controlled, otherwise it will be the governing body.
Multi-academy trusts will get a single annual allowance of £15,000.
If a school becomes a voluntary-aided school, foundation school, free school or academy part way through a tax year, the academy’s governing body will be responsible for the Apprenticeship Levy from this point and get a full allowance of £15,000.
What do you need to do now?
- Start planning how you could use apprenticeships in your organisation.
- Read the updated guide for employers on how you will pay the levy (if required), access the digital system and pay for apprenticeships in future.
- Use the online tool for employers to calculate your levy contribution, begin to consider your training, and estimate what you will have available to spend on apprenticeships.
For further information please get in touch with a member of the team directly on 0330 123 2540 .