Professional February 2017

Professional development insight

The biggest change for employers to consider is the new funding regime for both SASE and trailblazer apprenticeships which places apprenticeship funding in the hands of the employer. This begins with the introduction of the apprenticeship levy in April 2017. Further details about eligibility and paying the levy is provided in the article on page 18. Alongside this, the SFA are introducing on 1 May 2017 a new set of apprenticeship funding rules that detail a number of things that include: accessing the levy, what the levy can be spent on and how to choose not only the right training provider but also the right end-point assessment organisation for the employer. Of course, the questions every employer wants answered are: how they are going to be paying the levy; and how do they draw down the funding available and pay for apprenticeships. By the end of January 2017, HM Revenue & Customs (HMRC) should have contacted all employers eligible to pay the apprenticeship levy to declare that they are levy-paying and to set up a digital apprenticeship service (DAS) account. Once the employer has declared the levy, they will be able to access the funding available using their DAS account via their Government Gateway ID and pay as you earn scheme details. Though the Internet is awash with information about the apprenticeship levy, the Government’s guidance – Apprenticeship funding: how it will work (http://bit.ly/1SYtZ88) – details evolving policy and changes prior to the introduction of the levy. The NAS has also published a

useful fact sheet – Apprenticeship reforms and key information for employers (http:// bit.ly/2hjTTs1) – which provides more detail. Once the employer has access to their DAS account, they will be able to do a number of things which is demonstrated in An employer’s guide to the digital apprenticeship service (http://bit. ly/2h9unAw) published by the DfE (see chart below). ...enable employers to make an informed choice and engage the right training provider... The five steps are more fully explained as follows: 1. Plan the apprenticeship programme you wish to undertake, from both financial and skills analysis points of view. Think about the skills you need for the future and if you have enough funding in the levy pot. It may be helpful to consider conducting a training needs analysis with your local training provider. 2. Choose the apprenticeship programme, training provider and end-point assessment organisation to deliver the programmes. All training providers that wish to deliver apprenticeship provision will have uploaded their course information to the directories in DAS, to enable employers to make an informed choice and engage the right

training provider for them. It is crucial to note that only approved Government apprenticeship programmes can be funded using the apprenticeship levy and not in-house training programmes or other qualifications. It’s important to consider the training that the employer already delivers to their staff and identify if an apprenticeship could replace this activity. 3. Many training providers offer a service to advertise a vacancy on behalf of the employer. Unless the employer has already recruited an apprentice, the training provider will advertise the vacancy on the Recruit an apprentice pages (http://bit. ly/2i0aVs7), which will now be accessed through DAS. 4. Once the apprenticeship levy enters the DAS account, the employer will be able to manage the funds in their account to do a number of things. For example, check apprenticeship levy payments entering the account and outgoing payments to training providers. It will help you forecast levy spend and assist you in gaining support should you not have enough funds in your account. 5. Finally, the employer will be able to engage with their chosen training provider and end-point assessment organisation, agree payment schedules and, if intervention is required, suspend payments to training providers. Training providers are not able to see funds in the employer’s DAS account so the employer will need to discuss their DAS account with them. And… There is still much to learn about accessing apprenticeship levy funding but there are a few things that employers can do to prepare themselves: ● ensure they are up to date with evolving policy and documentation by regularly reviewing Apprenticeship funding: how it will work (http://bit.ly/1SYtZ88) ● review their staff training strategy and identify if an apprenticeship would be a suitable alternative to courses for which they would not be able to use the levy ● if they have not been contacted by HMRC by the end of January contact HMRC to ensure they are declared that they will be an apprenticeship levy payer ● call the National Apprenticeship Service (0800 015 0600) for advice and guidance on apprenticeships and suitability for their organisation; CIPP members can also utilise our advisory service on 0121 712 1099. n

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Issue 27 | February 2017

| Professional in Payroll, Pensions and Reward |

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