Changes to Apprenticeship Levy Funding

Changes to Apprenticeship Levy Funding | Monday 21 October 2024 | 2 min read

Plans to change the apprenticeship levy funding have been announced by the government as part of its reform the apprenticeships system in England, with the ambition to provide better career opportunities for young people.

Reform of the apprenticeship levy

The government’s plans are intended to boost opportunities for young people through apprenticeships and include a new growth and skills levy. In particular, it hopes to give young people a route in to careers in critical sectors, which will tackle skills shortages, as well supporting sustained economic growth.

Skills needs varies across industries, with the health and social care sector experiencing the highest demand, followed by education, manufacturing, and science and technology.

While the announcement contains relatively few details, the government has stated that it will allow funding for shorter apprenticeships. It anticipates therefore giving both apprentices and employers greater flexibility over their training than under the current system, where apprenticeships now must run for at least 12 months.

The government has also suggested that the changes will include removing funding for apprenticeships that are equivalent level to a master’s degree. The focus for funding instead being on apprentices at the start of their career.

Skills England report

Skills England, the government’s new body for the skills system has also published its first reports. Under the new levy, the training eligible for funding will be developed over time and will be informed by Skills England’s assessment of skills needs.

For help and advice on this topic or related issues, please get in touch with Emily Morrison by calling 01727798106, or emailing emily.morrison@salaw.com. 

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  Emily
  Morrison Associate Solicitor
  Employment Team

  • Phone 01727 798 106
  • Email emily.morrison@salaw.com