In spring 2017 the way the government funds apprenticeships in England is changing. Some employers will be required to contribute to a new apprenticeship levy, and there will be changes to the funding for apprenticeship training for all employers.
Steve Radley, director of policy at CITB comments:
“This announcement brings mixed news for construction, but it’s good that Government has responded to what we said on the challenges faced by smaller firms.
“The co-investment rate for non-levy payers is lower than expected, at 10%, with the remaining 90% covered by funds raised by the levy. It’s also encouraging to see that smaller firms will be exempt from co-investment if they take on a 16-18 year old apprentice. With more than half of all construction apprentices under the age of 19, this is a win for the industry. Companies of all sizes will also appreciate the £1,000 incentive for taking on one of these younger learners.
“But there is still work to do to make sure ensure funding bands reflect the actual costs of training, so that apprenticeships are affordable for companies of all sizes. We will seek further clarification from Government on how the bands have been set, and together with industry, set out the likely impact on construction firms and their ability to take on apprentices.
“We will now work with Government to ensure the Apprenticeship Levy works for the construction industry. Today’s proposals will inform our ongoing work to reshape the CITB grants scheme, so that it supports the most-needed skills and helps employers take on the apprentices construction vitally needs.”