By CAKE PD, May 16 2019 12:28PM
In the two years since the launch of the Apprenticeship Levy much has changed, new standards have been introduced, funding bands cut and the change in rules around transfers are just a couple of examples.
At our recent apprenticeship update events, we heard comments such as, "It's too complicated, I’ve not even looked into it yet", "I receive so much information that’s not relevant, I don’t bother with it" and "I don’t understand the funding at all". So, to help cut through the noise and make sense of it all, we have launched the Apprenticeship Bulletin, a monthly roundup of apprenticeship news.
In our first issue, we explain apprenticeship funding transfer from one employer to another, remind levy payers of ‘use it or lose it’ starting in this month and share a bit of good news from one of CAKE’s client’s management apprentice.
Some good news: Increase in Transfer Allowances from April
If you pay the levy, your transfer allowance has gone up from 10% to 25% of your year’s levy total. You’ll see this in your service account from the end of April. You’re free to make a transfer to any employer you want for apprenticeships training and assessment. Many employers are choosing suppliers, customers and even local charities to benefit from this. Find more details, including a useful visual and video on the whole process here.
But a risk: No apprenticeships for non-levy payers?
Up to 98% of non-levy-payers could be left without apprenticeships if the levy pot runs dry. There are concerns that the current funding mechanism needs a £1 billion ‘safety net’, according to AELP. Successes such as NHS trusts using their transfers could be few and far between in the future unless there’s an overhaul in apprenticeship funding. There was a barrage of transfer-related questions at the recent Apprenticeship Conference, so it remains a hot topic. You can subscribe to AELP here. Their updates are frequent and punchy.
Some not so good news: Expiry of levy funds
From May, levy payers will start to lose their older, unused funds. If you’re affected, you’ll see money expire 24 months after it first appeared in your account. ESFA has created a Funding Projection Tool that you can use to see how your future funds will disappear. Here’s a full explanation. Just a warning – the video is a touch under half an hour but is very clear on how expiry works.
And finally some great news: Norfolk County Council apprentice gains promotion
James, one of our management apprentices at Norfolk County Council, got promoted to a team manager recently. James is a model delegate on his apprenticeship programme and says that the learning and networking with other managers were important his recent career milestone. He also thinks the management support he’s received from his employer to help him with the programme has been brilliant. At CAKE we believe learning success comes from a close partnership of apprentice, employer and CAKE. James is an excellent example of all three working really well together.
If you have any questions regarding the Apprenticeship Levy or our programmes, please call on 01603 733006 or email email@example.com.
The CAKE team.