Useful Information for Employers
Levy Paying Employer
MVRRS are an approved ESFA employer levy training provider. If you’re an employer with a pay bill over £3 million each year, you must pay the apprenticeship levy from 6 April 2017.
From May 2017 the way apprenticeships are funded is changing!
The government are pushing through major reforms to encourage employers to invest more and more in apprenticeships. The reforms will impact on all businesses involved in apprenticeship training, regardless of their size.
The levy encourages employers to take on more apprentices, and invest in the continued training of their existing apprentices and other staff. Organisations that pay the levy and invest in apprenticeships will receive more money than they put in through a 10% top up of additional funding to their 'Apprenticeship Service Account' provided by the government. This means for every £1 employers pay, they will receive £1.10 in their digital account.
Your levy payment funds are put into your digital 'Apprenticeship Service Account'. You will then be able to use your account to perform various tasks in connection with apprenticeship training such as selecting an apprenticeship framework, choosing a training provider, choosing an assessment organisation and advertising apprenticeship vacancies.
Spending your levy allowance...
Funds in your digital Apprenticeship Service Account can only be used to cover the costs of apprenticeship training and end point assessment with an approved training provider and assessment organisation. The funding does not cover associated training costs such as apprentice wages or travel costs. The government will apply a 10% top-up to the funds that levy paying employers have for spending on apprenticeship training in England. This means that for every £1 that enters your account, you will receive £1.10!
If you need further info about the Levy standards please follow this external link or contact us directly to discuss your training needs and how we can support you.
Non Levy Employer
Both the employer and the government pay a proportion of apprenticeship training costs directly to the provider. The government pay 90% of the allocated funding band and the employer pays 10%. Additional training costs on top of the funding allocation is likely to be charged to the employer by the training provider.
You will need to choose a suitable programme of training for your apprentice, which can be on an apprenticeship framework or apprenticeship standard. Apprenticeship standards are new apprenticeships developed by employer groups known as trailblazers. The government plans to phase out frameworks within five years in favour of the new employer-led standards. MVRRS ltd is an accredited ESFA training provider and can support you with your Non Levy Training contact us now for more info.