How does the funding work?

The government is committed to delivering prosperity for the future, and developing our nation in the skills of tomorrow is absolutely crucial to this plan.

Last year the government announced their vision to improve the quality of apprenticeships in England ensuring they met employers’ requirements for skills and set a target of 3 million apprenticeship starts by 2020. The aim is to ensure that employers take responsibility in creating opportunities for our future generation and addressing the skills shortage.

The system is designed to boost the economy, create and develop a more technically-skilled workforce and ensure that large employers invest in learning and development for their employees. It will enable more people to progress into more senior, technically-challenging job roles.

Employers will send data to HMRC from the 6th of April and then the new system will kick in from the 1st of May. From the 1st of May 2017, some employers will be required to pay for apprenticeships either through the apprenticeship levy pay bill tax or through a co-investment cash contribution.

Read the full Governments Vision for Apprenticeships by 2020 here.

Existing apprenticeship frameworks will be phased out between now and 2020, and the government is due to announce further employer guidance on how to calculate and pay the apprenticeship levy. Please see our apprenticeship levy news update for further information.