Changes to Apprenticeship Levy

The government is to boost opportunities for young people through ambitious apprenticeship reforms in England.

Under new proposals, the Prime Minister announced plans for a new ‘growth and skills levy’ which will replace the existing apprenticeship levy and include new foundation apprenticeships.

The new levy will also allow funding for shorter apprenticeships, giving learners and employers greater flexibility over their training than under the existing system – where apprenticeships must run for at least 12 months.

Concerns have been raised over the decline in employers investing in apprenticeships in previous years, with the new proposals, the government hopes that this will boost interest and encourage young people to study for a qualification whilst working.

The scope and extent of what type of training will be eligible for funding under the levy, will be developed over time by Skills England, and assessments will be carried out by the Department for Education.

To fund the new proposals, employers will be asked to review allocation of their funding for apprenticeships, to invest in younger workers. This will also involve businesses funding more of their level 7 apprenticeships – equivalent to a master’s degree and often accessed by older or already well-qualified employees – outside of the levy.