Apprenticeship Levy Reform

The Government today (1 October 2018) announced a package of reforms to ensure the Apprenticeship Levy provides people with the skills they need to succeed.

The changes are aimed at providing flexibility for businesses so they can take full advantage of the benefits of employing apprentices, and to help as many people as possible find the right training to equip them for the new economy.

An extra £90 million of funding will enable employers to invest a quarter of their apprenticeship funds on people working for businesses in their supply chain, boosting the number able to benefit from high-quality apprenticeship training.

A further £5 million was announced for the Institute for Apprenticeships to introduce new standards and updating existing ones so that more courses can be offered, meaning more choice for those considering their training options. The Government will discontinue the old frameworks so that all new apprenticeships will be on the same higher-quality standards by the start of the 2020/21 academic year.

In the coming weeks, the Government will set out a process to seek views on the operation of the levy after 2020 to ensure it supports the development of the skilled workforce businesses need for the new economy. CECA has previously raised our concerns regarding the implementation of the Levy, and will be seeking to input our views on the new reforms.

The Government is also establishing a National Retraining Scheme to support adults across the country and equip the workforce with the skills needed for the new economy. While this scheme is developed, the Government is also funding additional projects including £34m for construction skills funding.