1. What is an apprenticeship?
An apprenticeship is a genuine job with an accompanying assessment and skills development programme. It is a way for individuals to earn while they learn gaining valuable skills and knowledge in a specific job role. The apprentice gains this through a wide mix of learning in the workplace, formal off-the-job training and the opportunity to practise new skills in a real work environment. Apprenticeships benefit employers and individuals, and by boosting the skills of the workforce they help to improve economic productivity.
2. How do they work?
Apprentices must spend at least 20% of their time on off-the-job training, however, they may need more than this if, for example, they need training in English and maths. It is up to the employer and training provider to decide how the off-the-job training is delivered. It may include regular day release, block release and special training days or workshops. It must be directly relevant to the apprenticeship framework or standard and can be delivered at the apprentice’s normal place of work as long as it is not part of their normal working duties. It can cover practical training such as shadowing, mentoring, industry visits and attending competitions.
On-the-job training helps an apprentice develop the specific skills for the workplace and they should be supported by a mentor.
Once an apprentice completes their apprenticeship they should be able to demonstrate that they can perform tasks confidently and completely to the standard set by industry.
3. Apprenticeship levels
- Intermediate Level 2 equivalent to 5 GCSE passes
- Advanced Level 3 equivalent to 2 A level passes
- Higher Level 4, 5, 6 and 7 Foundation degree and above
- Degree Level 6 and 7 Bachelor’s or master’s degree
Who are they for?
Benefits of hiring apprentices:
Other benefits that apprenticeships contribute towards include:
- Increasing employee satisfaction
- Reducing staff turnover
- Reducing recruitment costs
4. Employer responsibilities
There must be a genuine job available with a contract of employment long enough for an apprentice to complete their apprenticeship. Employers must pay an apprentice’s wages and the role must help them gain the knowledge, skills and behaviours they need to achieve the apprenticeship with support from the employer.
Employers can select a training provider from the Register of Apprenticeship Training Providers and agree a total price for the cost of training and assessment. For an apprenticeship standard, this should include the cost of the end-point assessment which must be agreed with the provider selected from the Register of End-Point Assessment Organisations.
Employers need to have:
The government is offering additional support to organisations with fewer than 50 employees.
Additional payments and funding which may be available
5. Apprenticeship reforms
Government has reformed the way apprenticeships are delivered and funded in England. Its ambition is to increase the number of high-quality apprenticeships that meet the needs of employers. As part of the reforms apprenticeships are more rigorous, better structured, independently assessed and more clearly aligned to the needs of employers.
The reforms address the skills shortages reported by many industries and help keep the UK internationally competitive. Most importantly, apprenticeships offer high-quality opportunities for people to develop their talents and progress their careers.
Recent legislation has come into effect which changes the minimum English and maths requirements needed to complete an apprenticeship for people with a learning difficulty or disability.
The changes will lower the English and maths requirements for these apprentices to an Entry Level 3 qualification. It will make completing an apprenticeship more achievable for those who are able to meet all the occupational requirements to be fully competent in their role, but who may struggle to achieve English and maths qualifications at the level normally required.
‘T levels’ are new technical study programmes that will sit alongside apprenticeships from September 2020. The reforms are at the heart of a skills partnership between government, business and training providers – a partnership that will create the skills revolution needed to meet the needs of our business and education and training providers – a partnership that will create the skills revolution needed to meet the needs of our economy.
The government is doubling the annual level of apprenticeship spending between 2010 to 2011 and 2019 to 2020 to £2.5bn, which will be funded by the new apprenticeship levy.
6. The apprenticeship levy
If you’re an employer with a pay bill over £3 million a year, you must pay the apprenticeship levy from 6 April 2017. Read guidance on how to pay the apprenticeship levy. You will report and pay your levy to HMRC through the PAYE process.
The levy will not affect the way you fund training for apprentices who started an apprenticeship programme before 1 May 2017. You’ll need to carry on funding training for these apprentices under the terms and conditions that were in place at the time the apprenticeship started.
Less than 2% of UK employers pay the levy. Levy funds will create opportunities for young people across the country, delivering the skills British businesses need.
The levy will give employers control of their training, agree a total price for each apprenticeship, which includes the costs of training and assessment.
In England*, the government will top up employers’ levy with an extra 10%, paid directly to employers’ apprenticeship accounts.
An employer’s pay bill is made up of the total amount of the employees’ earnings that are subject to Class 1 National Insurance contributions, such as:
– pension contributions
What about non-levy-paying employers?
Employers with a pay bill of less than £3 million a year will not need to pay the levy.
At least 90% of non-levy-paying employers’ apprenticeship training and assessment costs in England will be paid for by the government. The government will ask these employers to make a 10% cash contribution to the cost, paid directly to the provider, and the government covers the rest (up to the maximum agreed funding band).
If you require more information regarding the Apprenticeship process or funding rules please contact TRS Training Ltd on 01744 809010.