Government proposing plans to get businesses hiring
The Department for education (Dfe) has revealed plans to create three million new apprenticeship roles by 2020 – and it’s set to help classic apprentices.
Under the plans for the levy the Government has proposed that employers that are too small to pay the levy – around 98% of employers in England – will have 90% of the costs of training paid for.
The levy is a tax on all businesses with payroll costs of £3 million or more a year and will be calculated at 0.5% of a business’ annual payroll bill, minus an allowance of £15,000.
Extra support – worth £2000 per trainee – will also be available for employers and training providers that take on 16- to 18-year-old apprentices.
This is a significant development for classic businesses and filling the growing skills gap in classic apprenticeships.
The Federation of British Historic Vehicle Clubs (FBHVC) set up Europe’s first classic car apprentice course in 2014. Communications director Geoff Lancaster says: ‘It’s a boost definitely. Bigger industries are tasking HR departments with employing enough young people to get the levy back – meaning lots of new apprentices will be employed – including classic ones.’
‘However, under current proposals it stipulates that if a course doesn’t reach target numbers, it could take away funding. As we’ve only been going for two years, we’re not quite there yet. So that’s something we’re currently in talks about.’
Employers with fewer than 50 staff will also have 100% of training costs paid for by the Government if they take on these apprentices. The DfE is proposing the new funding system comes into effect on 1 May 2017. Robert Halfon, apprenticeships and skills minister says: ‘We need to make sure people of all ages and backgrounds have a chance to get on in life. Apprenticeships give young people a ladder of opportunity. That’s why we continue to work tirelessly to deliver the skills our country needs. The apprenticeship levy is absolutely crucial to this.’
The proposals are for apprenticeship funding in england. scotland, wales and Northern ireland are still in the consultation phase with the proposals.