JTL | Facts About Funding

JTL explains how the recent apprenticeship reforms will affect some businesses working in the electrical industry.

Leading work-based training specialist JTL has put together a guidance package for employers to explain the intricacies of the new funding rules being introduced by the Government from the start of this month. The package includes a dedicated section on its website, leaflets, an explanatory booklet, videos and a customer hotline number.

JTL Chief Executive, Jon Graham, says that most of the information currently available is very confusing: “Traditionally JTL has been able to help smaller companies that look to take on perhaps one or two apprentices each year. We know that these are the companies that can be easily put off from doing so if they feel the burden of paperwork and cost makes this too onerous.

“So, we’ve developed a simple way of explaining the process, which we believe will be extremely helpful for small employers, in particular. We have a similar raft of information for large companies we work with that have an annual pay bill of over £3 million and will have to pay the new Levy.”

What’s changing?
Last year saw the introduction of the new trailblazer Standards which replaced the previous framework qualifications. These new Standards have been developed by groups of employers from the industry
working together to design a new qualification to better meet the needs of the industry.

JTL introduced the new Electrotechnical Standard across most of the country during 2016/17 and anticipates that the majority of new starts during 2017 will be on the new qualification.

Employers with under 50 employees
Alongside the changes to the qualifications, Government is now introducing changes to simplify the way apprenticeships will be funded based on the qualification Standard or Framework. Additionally, the size of the employer will also make an important difference. These new arrangements will start on 1st May:

1. The Electrotechnical Standard has been moved into a new band with a maximum value of £18,000 for the full apprenticeship.

2. Employers with an annual average of less than 50 employees who take on and train 16- to 18-year-old apprentices won’t be required to contribute to the cost of the apprenticeship. Such employers will also not be required to co-invest for 19-24 year olds who are care leavers or have a Local Authority Education, Health and Care Plan.

3. Such employers taking on and training 19+ year old apprentices will be required to contribute 10% of the cost of the apprenticeship.

4. In addition, all employers who take on a 16-18 year old will receive an additional payment of £1,000, payable in two equal instalments at 3 and 12 months.

What do you need to do next?
Nothing changes; JTL will take care of everything for you when you sign up to take on an apprentice. If you need to make a financial contribution, JTL also makes this as simple as possible and will keep the paperwork required for the whole process to a minimum.