The door to giving greater flexibility for employers to help close skills gaps has been opened with the latest update to the Apprenticeship Funding Reforms.

Employers who pay the Apprenticeship Levy now have the option to transfer 10 per cent of their annual apprenticeship funds to other organisations.

This change is seen by many as a response to companies calling for greater flexibility in the administration of the Apprenticeship Levy, brought in by the government just a year ago.

Damian Burdin, Chief Executive at Progress to Excellence Ltd, said:

“The change means that large organisations with unspent levy funding will be able to support smaller employers in their supply chain to recruit new apprentices or train existing staff via an apprenticeship.

“A report published earlier this year by the Chartered Institute of Personnel and Development (CIPD) shows that more than half of employers who pay the levy want a more flexibility. 

“This change may be as a result of this call by businesses and will hopefully enhance employer ownership over their levy funds.”

This latest change will apply to those employers with an annual wage bill of more than £3 million who pay the Apprenticeship Levy.

In its guidance to transferring apprenticeship service funds, the government says any employer registered on its apprenticeship service is eligible to receive and use these transferred funds. The money can only be used to pay for the training and assessment cost of the apprenticeships agreed with the receiving employer. However, there are no restrictions as to whom employers can transfer the funding. 

Up to 10 per cent of levy funds can be transferred, calculated from the total of the employer’s declared levy value and the government’s 10 per cent top-up.

Damian Burdin added: “Apprenticeships are an incredibly valuable and cost effective way of employers bringing in new talent to their business or upskilling their existing workforce. 

“This update to the Apprentice Funding Reforms will enable businesses to close skills gaps and can therefore only be seen as a positive move. Allowing smaller organisations to draw on these financial resources should only increase the number of apprenticeship opportunities available and give employers a greater incentive to see the value of taking on apprentices - not only for themselves and their growth but also for the greater good of the economy.”

Employers who need to find out more about the apprenticeship levy and the new funding reforms can This email address is being protected from spambots. You need JavaScript enabled to view it. the Progress to Excellence Ltd team or call on 0151 650 6933.

You may also be interested in these articles:

Electrical Installation Lecturer

Protocol are working with one of the largest colleges based in the North West of England and are looking to recruit an exceptional Electrica...

Salary : Up to £28000 per annum


Maths Lecturer

Permanent, Full Time, Maths Lecturer required to work within a fantastic FE College based in Cheshire!

Salary : Up to £25000 per annum


Built Environment/ Surveying Lecturer

Protocol are working with an FE College based in Shropshire and are looking to recruit a specialist Built Environment/Surveying Lecturer to ...

Salary : Up to £20 per hour + Plus Statutory Holiday Pay


Pastoral Support Tutor

We are working with a college of further education based in Stockport that offers qualifications up to degree level as well as bespoke vocat...

Salary : Up to £16 per hour + Plus Statutory Holiday Pay


A level Sociology Lecturer - Long Term, Top Sixth Form College

A fantastic opportunity is available at a top sixth form college based in Leicestershire.

Salary : Up to £20 per hour + Plus Statutory Holiday Pay


DAILY NEWS2

SOUNDBITES2

FE News gives you the latest breaking news and updates on emerging education strategies and the #FutureofEducation.

Providing trustworthy and positive news and views since 2003, we publish exclusive peer to peer articles from our feature writers, as well as publishing user content from our network of over 2000 contributors, offering multiple sources of news across the Education and Employability sectors.

FE News also ‘shoot’ video interviews and news bulletins so you receive the latest developments in Skills News and across the Apprenticeship, Further Education and Employability sectors.

 RSS IconRSS Feed Selection Page