This is big news for our employers.
On 13 March, Phillip Hammond, Chancellor of the Exchequer, revealed in his Spring statement that small and medium-sized enterprises will get a massive boost for their apprenticeship programmes by announcing a £700 million package of reforms, to be implemented in April.
From 1 April, non-levy-paying employers will have their co-investment rate cut from 10% to 5%, halving the financial burden on these organisations.
The cut is meant to incentivise non-levy paying organisations initially put off by the co-investment rate to invest in more apprenticeship programmes.
Since the introduction of the levy and the co-investment rate, employer and learning organisations have called for a reduction in the co-investment rate. Many small businesses were also holding off on starting their own apprenticeship programmes, hoping that the rate would be reduced.
With the rate cut, billions of pounds could be freed up to invest in apprenticeships. 54% of all apprenticeships in England are with non-levy paying employers. This percentage will only grow.
TQUK is delighted by this announcement. The apprenticeship co-investment rate cut removes an obstacle that kept many employers from starting their own apprenticeship programme and investing in the exciting, high-quality apprenticeships they need to take their businesses forward. We are excited to work with employers who will be embarking on their apprenticeship journey.
Check out all the apprenticeships TQUK offers End-Point Assessment for, and visit the Department for Education website for complete details on the funding rules from 1 April 2019.
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