The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
Lifetime ISA: The Savings (Government Contributions) Bill 18 October 2016
The Lifetime ISA is being legislated for through the Savings (Government Contributions) Bill and is due to become available from April 2017.
The Savings (Government Contributions) Bill will introduce the Lifetime ISA, where people aged from 18 to 40 will be able to open an individual savings account to which they can contribute up to £4,000 each year up to age 50, and receive a government bonus of 25% on those contributions. The Lifetime ISA account holders will be able to access their funds in full to buy their first home (worth up to £450,000), from age 60, or if terminally ill. Funds withdrawn in other circumstances will be subject to a 25% charge, which returns the government bonus element (including any interest or growth on that bonus) and applies a small additional charge to ensure the product is used for long-term saving. The Bill will also introduce Help to Save, which will be open to working people in receipt of Universal Credit and have a minimum weekly household earnings equivalent to 16 hours at the national living wage or Working Tax Credit. It will work by providing a 50% government bonus on up to £50 of monthly savings into a Help to Save account. The bonus will be paid after two years, with savers able to continue saving for a further two years, meaning that people can save up to £2,400 and benefit from government bonuses worth up to £1,200.
Details on the design of the Lifetime ISA are provided in an updated design note .
Geographical extent - The provisions of the Bill extend to all four nations of the United Kingdom (Clause 5 of the Bill makes payment of bonuses an excepted matter in the Northern Ireland Act 1998. This provision will require legislative consent from the Northern Ireland Assembly).
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The Government sets out how apprenticeships will be funded 27 October 2016
The government has set out how apprenticeships will be funded as part of the drive to help millions get the skills they need for a successful career and make Britain a country that works for everyone.
Apprenticeships give people more control over their lives and can be the difference between just about managing and pursuing a skilled, long-term career.
The funding policy will underpin the new apprenticeship levy, which will deliver much needed investment in the skills we need to change the lives of millions.
The government will continue to work with employers and providers as it introduces the reforms.
Main measures confirmed are:
more support for younger apprentices and disadvantaged people: o
100% of training costs will be paid by government for employers with fewer than 50 employees who take on apprentices aged 16 to 18 years old. This will also apply to smaller employers who take on 19- to 24- year-olds who were in care or 19- to 24-year-olds with an education and health care plan o £1,000 each from government to employers and training providers who take on 16- to 18-year-olds and 19- to 24-year-olds who were in care or who have an education and health care plan o providers that train 16- to 18-year-olds on apprenticeship frameworks will be given an additional cash payment equal to 20% of the funding band maximum in order to help them to adapt to the new, simpler funding model o providers that train apprentices from the most deprived areas on apprenticeship frameworks will continue to receive additional funding from government. More than £60 million will be invested in supporting the training of apprentices from the poorest areas in the country, equalling around one third of all apprentices. To ensure that these funds are being invested in the right way the government will conduct a
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