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.
The government wants to give more support for 16- to 18-year-olds and those from disadvantaged areas.
The funding policy will underpin the new apprenticeship levy and the government will continue to work with employers and providers as it introduces the reforms.
Main measures confirmed that more support will be available for younger apprentices and disadvantaged people. The government will pay 100% of training costs 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
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 will receive a £1,000 from government.
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.
Skills Minister Robert Halfon said: “Apprenticeships work. The reforms we are rolling out will guarantee support from employers and government, so that millions of people can get the apprenticeships, skills and jobs for the future.
“Our apprenticeship levy will boost our economic productivity, increase our skills base and give millions a leg up on the ladder of opportunity – over 90% of apprentices currently go into work or further training. Making Britain a world leader on apprenticeships is essential if we truly want a country that works for everyone.”
To ensure higher-quality apprenticeships, the government has also introduced a new register of apprenticeship training providers, which opens today. All providers on the register will have to pass quality and financial tests. Those with an ‘inadequate’ Ofsted rating for apprenticeship provision will not be eligible to apply to the register.
The new apprenticeship funding policy was outlined in August. It will underpin the levy which will be paid by employers with a pay bill of more than £3 million.