Policy News Journal - 2015-16

providers would be prevented from offering poor quality ‘apprenticeship’ training without introducing new burdens on employers.

The consultation also looks at determining what form the penalty and enforcement regime may take.

This consultation is open for response until 19 August 2015.

Class 1 Employer National Insurance Contributions (NICs) zero-rate for apprentices under 25 27 July 2015

Draft regulations have been published defining 'apprentice' for zero-rate employer Class 1 National Insurance contributions (NICs) for apprentices under 25.

The government has published a technical consultation on draft secondary legislation for the zero-rate of Class 1 employer NICs for apprentices under the age of 25. The consultation will close on 18 September 2015.

The purpose of the regulations is to define the meaning of 'relevant apprentice'. This definition will be used to determine which apprentices under the age of 25 qualify for the zero-rate of employer Class 1 NICs. The definition of apprentices will: a. Include: government recognised apprenticeships in the UK ie those which follow government arrangements/approved frameworks. This includes frameworks or standards recognised by the Skills Funding Agency in England as well as apprenticeship frameworks approved by the Welsh, Scottish and Northern Ireland governments.

b. Exclude: apprenticeships which do not follow government approved frameworks, also known as common law, apprenticeships; and

c. Require that a ‘relevant apprentice’ is one that will have a written agreement, specifying the government recognised apprentice framework/standard, with a start and expected completion date. This will be an agreement, between the training provider, apprentice and employer and will be the evidence the employer needs to retain when applying the zero-rate of employer Class 1 NICs for an apprentice under 25.

CIPP comment

The Policy Team will be asking for member opinion over the next few weeks to help inform the CIPP’s response to this consultation.

Guidance for employers on the definition of an apprentice and more detailed guidance on how to apply the zero- rate to the earnings of a 'relevant apprentice' through the payroll from 6 April 2016 will be available in January 2016.

'Get in and go far’ with an apprenticeship at exam results time 18 August 2015

With this being the first year that young people are required to stay in education or training until they turn 18, there’s never been a better time to consider an apprenticeship.

Skills Funding Agency - Apprentices now have the opportunity to ‘ get in and go far ’ with an apprenticeship at some of Britain’s biggest and brightest companies, including Google, ASOS and ITV. With three levels of apprenticeships, intermediate, advanced and higher/degree, people with varying skills and qualifications can consider apprenticeships as a great option for a successful future.

Sue Husband, Director of the National Apprenticeship Service, said:

“This is an exciting time of year for young people, but it can also be worrying as they wait to hear what their future holds. We want young people to know that whatever their results, an apprenticeship can offer them a successful

CIPP Policy News Journal

25/04/2016, Page 19 of 453

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