Funding Allocations For Non-Levy-Paying Employers Paused

Having implanted the new levy only last week, the government has now paused funding allocations for non-levy-paying apprentice employers.

On 6th April 2017, the government implemented the new apprenticeship levy in a bid to develop vocational skills and increase the quantity and quality of training with employers at the centre of the system.  In addition to this, it was announced that the new apprenticeship levy has been set at 0.5% of the total wage bill for all businesses whose payroll exceeds £3 million a year.

For non-levy-paying employers, a co-investment rate was implemented to support employers who do not pay the levy, which will see the government and employer share the cost of training.  Due to the amount of applications received the government have now paused all applications for this due to a significant rate of applications and interest from training providers.

The Education and Skills Funding Agency have stated that pausing applications will allow them to “review our approach to ensure that we achieve the right balance between stability of support and promoting competition and choice for employers…”

In the light of this information, all existing contracts held by all current providers will be extended until the end of December 2017.