Apprenticeships: a guide for employers not paying into the levy
Apprenticeships: a guide for employers not paying into the levy
What is an apprenticeship? An apprenticeship combines real work experience with structured off-the-job training often leading to nationally recognised qualifications such as ACCA. Apprenticeships attract funding which employers can use towards the cost of training apprentices and under new arrangements offer a cost effective solution to building skills.
What’s changing in 2017? The government has introduced changes which aim to give employers more control over shaping the delivery and content of apprenticeship training to help build a more highly skilled workforce for the future and increase UK competitiveness. the apprenticeship levy officially launched on 6 April 2017 and requires employers with a paybill of £3,000,000 or above to pay 0.5% of their total payroll into the levy operated through the PAYE system. Employers who pay into the levy will receive funding directly through an online account designed to help them manage their apprentices trailblazer standards are being introduced to replace the existing apprenticeship frameworks. The new standards set out the knowledge, skills and behaviours required for a particular job role and have been designed by employers based on their needs employers who don’t pay into the levy can access funding through a process called ‘co-investment’ where the employer only has to make a 10% contribution to the cost of training an apprentice. There are incentives for employers with fewer than 50 employees from 2018 all employers will be able to access an online account to help them manage their apprenticeship programmes employers can now use funding to train existing staff with an apprenticeship to help them gain new skills required by the business apprentices can be any age and access funding, although certain groups receive additional incentives
What is on offer to smaller employers? Most businesses will not have to pay the compulsory levy but this does not mean that they cannot be part of the new scheme. The very welcome news is that the government has specific financial help for funding apprentices aimed at smaller employees. The financial help for smaller employees is called ’co-investment’ and means that: the employer only has to make a 10% contribution to the cost of training the government will pay the rest (90%) up to the upper limit of the funding band allocated to that particular individual apprenticeship framework the government’s contribution is paid directly to the provider incentives are available for all employers who take on a 16-18 year old receiving an additional payment of £1,000 payable in two equal installments at 3 and 12 months. Employers with fewer than 50 employees and a wage bill of less than £3 million can access full funding to train an apprentice aged 16-18 years old and those aged 19-24 years old who have previously been in care or who have local authority, education, health and care plan the employer contribution is paid to the provider and you will be able to spread it over the lifetime of the apprenticeship and agree a payment schedule with the provider the employer will have to meet in full any cost which is above the funding band maximum and costs which are not covered by the funding The government will expect the provider to demonstrate that the employer has paid their contributions as a condition of the government paying their contribution.
To find out more visit accaglobal.com/eng/apprenticeship
Apprenticeships: a guide for employers not paying into the levy
What do I have to provide as an employer of an apprentice? Employers must provide a genuine job during the apprenticeship (minimum of 12 months or for the duration stated by the relevant standard) that will provide them the opportunity to gain the knowledge, skills and behaviours needed to achieve their apprenticeship. By employing an apprentice, employers have certain requirements to meet: an apprenticeship agreement must be signed at the start of the apprenticeship to confirm individual employment arrangements between the apprentice and the employer the apprentice must receive the Apprenticeship National Minimum Wage. Apprentices aged 16-18, or in the first year of their apprenticeship, must be paid a minimum of £3.50 per hour. All other apprentices are entitled to the National Minimum Wage for their age i.e. £5.60 per hour for apprentices aged 18-20, and £7.05 for those 21 and over although many businesses pay more the minimum hours of employment for an apprentice should be at least 30 hours per week. By exception, where the individual’s circumstances or the particular nature of employment in a given sector makes this impossible, then an absolute minimum of 16 hours must be met. In such cases the duration of the apprenticeship should be extended
What apprenticeship standards are available to the accounting and finance sector? The new trailblazer standards set out what an apprentice will be doing and the skills required of them, by job role. The approved standard outlines the skills, knowledge and behaviours required of the apprentice and the job they will need to be able to do by the time they have completed their apprenticeship. Standards are developed by employer groups known as ‘trailblazers’. Specific standards relating to accountancy are: Accountancy standards 1. Apprenticeship standard: professional accounting / taxation technician (approved for delivery) 2. Apprenticeship standard: professional accountant (in development) 3. Apprenticeship standard: assistant accountant (approved for delivery)
a minimum of 20% of the apprentice’s contracted employment hours across the whole apprenticeship must be on off-the-job training relating to the standard all apprentices must receive the same benefits as other employees a commitment statement signed by the employer, the apprentice and the main approved training provider must be place.
A minimum of 20% of the apprentice’s contracted employment hours across the whole apprenticeship must be on off-the-job training relating to the standard To find out more visit accaglobal.com/eng/apprenticeship
Apprenticeships: a guide for employers not paying into the levy
ACCA is playing a big part in the apprenticeship programme The great news is that ACCA has received approval to be an Apprentice Assessment Organisation (AAO) for the new English Trailblazer apprenticeship standard – ‘Professional Accounting/Taxation Technician’ – as part of the government’s flagship apprenticeship initiative. This is a significant step as part of our strategy to launch our apprenticeship assessment products in the UK. It’s a big opportunity that allows employers to offer their apprentices a route to our qualification under this new scheme. We’ve been working behind the scenes on a new apprenticeship pathway through our existing Diploma in Accounting and Business and being able to assess this new standard means we have a complete offering. What is ACCA’s role in supporting apprenticeships? we’re one of the first accountancy bodies to achieve this status and the approval, awarded by the UK Skills Funding Agency (SFA), will allow us to deliver end-point assessment for this new apprenticeship standard – a key recognition for ACCA in England we’ll be publicly listed on the SFA Register of Apprentice Assessment Organisations we’ll offer on-programme and end-point assessment for the ACCA Accounting Technician Apprenticeship (Level 4 Trailblazer) to apprentices in England aged 16 and over. This is an ‘entry-level’ pathway at technician level which will allow apprentices to continue their studies with ACCA after they complete the apprenticeship. This programme offers a high element of work related training
How can ACCA support you if you are interested in taking on an apprentice? If you are interested in developing the skills of your team in the area of accountancy and finance through apprenticeships, ACCA can support you to: fi nd an apprentice – we can enhance you search for talent by providing you access to our accountancy and finance job board and through our work to engage with schools explain which ACCA qualifications are eligible for apprenticeships and how they will support you in developing the skills your business needs e xplain the end point assessment process involved when choosing ACCA find and select a training provider
The level 7 Trailblazer standard sign off is expected soon and will enable an apprenticeship pathway from entry all the way through to Chartered Certified status.
To find out more visit accaglobal.com/eng/apprenticeship
For more information or to arrange a call back, please email apprenticeships@accaglobal.com
Apprenticeships: a guide for employers not paying into the levy
ACCA Accounting Technician Apprenticeship (Level 4 Trailblazer) Continue your journey to ACCA Membership
End-point assessment Portfolio & Reflective Statement (PRS)
Technical Role Simulation Exam
(completed training log and reflective statement)
On-programme assessment
Diploma in Accounting and Business
Foundations in Professionalism online module
Accountant in Business
Financial Accounting
Management Accounting
ACCA’s Applied knowledge exams
I want to get a job and start earning immediately
To find out more visit accaglobal.com/eng/apprenticeship
Apprenticeship training log Studying with ACCA means you can record the skills and behaviours you gain through the apprenticeship, which will also count towards the experience you need for full ACCA membership. That means you’ll already be on the way to being a fully qualified ACCA Accountant
I have a job and want to upskill
Apprenticeships: a guide for employers not paying into the levy
Top reasons to train an apprentice fill skills gaps and plan for succession train them to meet specific needs of the business bring in new ideas and innovation address motivation and retention challenges build diverse teams give opportunities to people locally
‘ The training is a low financial investment to access high quality training and is flexible. The new funding system and the reduced minimum wage mean a cost effective solution to building skills to develop their practice. Many said it could be a way to bring digital skills into the business.’ ‘ The new scheme will offer both the advantages of the old scheme and also will allow the lower costs to be agreed with the training organisation and be spread over the life of the apprenticeship.’
To find out more please email ACCA at apprenticeships@accaglobal.com
To find out more visit accaglobal.com/eng/apprenticeship