…..Planning for the future….. Apprenticeship Levy …..Planning for the future….. Jill Nagy Chief Executive August 2016

APPRENTICESHIP LEVY Introduction of a levy tax on large employers with a payroll bill above £3m. Levy tax will be 0.5% of the payroll bill above £3m, the first £15k is not payable. HMRC will manage the tax deductions from large employers, the tax levy will be passed to the government to oversee. Large employers will have 2 years to use the levy tax, although this may change. Employers will use the digital voucher system to allocate a Training Provider. SME organisations to continue under the current arrangements, although frameworks and standards may have different rates (still in discussion). Employers wanting to use Levy Funds (deliver in-house) need to register on ROTO, may be subject to Ofsted, financial audit. No NI on any apprentice under 25 years old from this tax year April 2016. HMRC on deduction tax levy monthly from April 2017. Two years to use money i.e. by following tax year or lose it.

TRAILBLAZERS – NEW STANDARDS Government is working to ensure apprenticeships are employer led. New standards have ben developed with employers leading – these can be recognised as Trailblazers. New standards provide flexibility and different delivery methods. External body/stakeholder to provide the end assessment process. New standards and apprentice frameworks to run alongside each other for one year approximately (may take until 2020 for all frameworks to change over). Lists of approved new standards being developed and submitted for approval are available on: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/503804/Apps_standards_list_19.02.pdf https://www.gov.uk/government/collections/apprenticeship-standards

WHAT DOES IT ALL MEAN TO US? If under £3m business as usual, but be prepared for change – talks around reforms continue! Check your annual payroll bill – over £3m, consider the following options: Pay the Tax – write it off. Review current apprenticeship programmes and how to increase numbers, write off part of the Levy as tax. Increase current apprenticeship numbers, existing staff apprenticeship opportunities, Review Recruitment Strategy – Graduate Programmes and Learning & Development Budgets – how can your organisation utilise the Levy, do we need to recruit differently? Can any of the L&D delivery come under the Levy? What does our apprenticeship programme look like now, the future post April 2017. If lower tax levy need to manage expenditure to maximize apprenticeship numbers.

To SUPPORT OPTION 3 Analyse data sets to inform decision making, include: Current apprenticeship numbers on programme by age, apprenticeship framework. Graduate numbers by location and job role. Current staff by age, lowest and highest qualification, department/area, location. Recruitments into the business over the last 3 years, by age, highest qualification, job role, location. Identify and detail all programmes delivered under your Learning & Development and/or other areas of the business – must have programmes, impact on the business. Identify any training and development not currently delivered due to budget restrictions, the importance of this training and development. Review how the organisation recruits new staff. Can you support Supply Chain? Understand the requirements of being on ROTO. Identify what guidance and support the organisation needs. May be able to use some of the levy fund (10%) for supply chain – still under discussion.

ACTIONS: LONG & SHORT TERM Agree possible apprenticeship programme opportunities: Existing staff. Increasing current apprenticeship numbers, locations and departments. Review graduate programme in-line with Higher/Degree apprenticeships. Develop new programmes embedding L&D programmes/training possibilities i.e. Management Apprenticeships. Review apprenticeship new standards and align to above. Review and align organisations Recruitment Strategy (based on data analysed). Review and align Learning & Development budget(s). Develop a Communication/Levy Positioning Strategy. Develop a new Recruitment Policy. Enhance organisations Learning & Development Strategy under the Levy. Start discussions with Supply Chain. Identify your expectations/service from a Training Provider(s).

Thank you for listening. Any Questions?