EMPLOYER SERVICES. THE LEVY GUIDE Let us help you get back what you put in through a bespoke levy implementation plan.
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1 EMPLOYER SERVICES THE LEVY GUIDE Let us help you get back what you put in through a bespoke levy implementation plan.
2 Contents Why partner with Dudley College? 3 Our services 4 Apprenticeships recruitment service 5 Diverse range of Apprenticeships 6 The levy An introduction to the levy 7 Key facts 8 Are you a levy paying employer? 9 Levy paying employers with an annual salary of over 3m Funding, tax breaks & incentives. Applicable to levy funded Apprenticeships 10 How the levy works for levy paying employers 12 Non-levy paying employers with an annual salary of less than 3m Funding, tax breaks and incentives 14 How the levy works for non-levy paying employers 16 Digital Apprenticeship Service Account 18 Existing frameworks v new standards 20 Dudley College facilities 22 WE ARE OUTSTANDING. WE ARE DUDLEY. Through extensive partnerships leaders create excellent opportunities for learners to progress into further learning and jobs." "Management of the apprenticeship provision is outstanding. The courses available meet the needs of employers and apprentices particularly well. College staff and employers work highly effectively and collaboratively to monitor apprentices' progress. As a result, a high proportion of apprentices achieve their qualifications within the planned time scale." Ofsted - Outstanding 2017
3 Why partner with Dudley College? 12 MILLION 9 MILLION OFSTED RATED 2017 OUTSTANDING ONE OF THE TOP COLLEGES NATIONALLY For the number of apprentices that successfully achieve their qualifications Invested in new centre for Advanced Building Technologies and Construction Skills (Dudley Advance II) Invested in new 2,800m 2 centre for Manufacturing and Engineering Technology (Dudley Advance) Annual turnover over in 2016/17 41 MILLION Dudley College is one of the UK s major colleges for further education 4,000 apprentices on programme 16/17 3 WHY PARTNER WITH DUDLEY COLLEGE? 85% Overall Apprenticeship success rate in 2016/17 (well above national rates) Established since 1862
4 Our services 4 OUR SERVICES From entry level to high level technical and professional skills From Apprenticeships to work-based training and short courses, we work with businesses of all types and sizes across a range of market sectors to deliver: Comprehensive Apprenticeship training and work-based learning Professional and technical training designed for up-skilling your existing workforce Bespoke short training courses designed to meet your specific needs. We are working with hundreds of businesses and organisations, including: Our apprentices are our keystones for the future of our business. Choosing and educating them can be difficult. Dudley College have been key in achieving this and we have a good relationship over the seven years that we have been working together. Engineering Manager & apprentice Co-ordinator, KUKA Systems UK Limited.
5 Apprenticeship recruitment service Free Apprenticeship recruitment service for all levy and non-levy paying employers - a step-by-step guide: Enrol Advertise Selection 5 APPRENTICESHIP RECRUITMENT SERVICE Interview Advertise We will advertise your vacancy to our own learners and wider afield too, via the National Apprenticeship Service. Our free recruitment service means not only will we advertise your vacancy, but we will also refer pre-selected applications suitable for the role. Selection Our team will match and screen potential applicants to your specific needs and job role and will send their details direct to you. We measure candidates against your individual criteria (which could include qualifications such as GCSE English and maths) and make sure they understand the vacancy, the role, the commitment and your company s expectations of them. Interview Arranging interviews, particularly for smaller employers who may not have a full-time HR resource, can be a drain on management time, so we can do that for you too! You just have to look over the CVs and agree which candidates you d like to meet. Enrol Leave all the paperwork to us. When your apprentice starts their employment we will enrol them onto the Apprenticeship and the journey to skilled and qualified staff begins.
6 6 DIVERSE RANGE OF APPRENTICESHIPS Full marks to Dudley College, who are highly flexible and adapted the advanced level Apprenticeship course to suit our individual business needs. The quality of the training from Dudley College is excellent. Apprenticeship Co-ordinator, The Alan Nuttall Partnership Limited. Dudley College offers entry level, intermediate and advanced Apprenticeships for all businesses covering: Accountancy Barbering Beauty therapy Business administration Business improvement techniques Construction, trades & the built environment Customer service Early years, children & education Engineering & manufacturing Hairdressing Health & social care Hospitality & catering IT Management & team leading Motor vehicle maintenance & repair Retail Sports & leisure Warehousing & logistics.
7 The levy An introduction to the levy Announced by the Chancellor in last year s Autumn Statement, the Apprenticeship Levy is expected to supplement Government Apprenticeship funding by raising 3bn annually. The levy will require you to make an investment in Apprenticeships, from which you can benefit by training existing employees or new recruits and by bringing high level professional and technical skills to your business. It will be calculated based on total employee earnings, not including other payments such as benefit in kind. Every employer will receive a 15,000 allowance to offset the costs, which means that only 2% of employers will pay. Even with just a small percentage of employers contributing, the Government anticipates raising 3bn annually through the levy. Employers will be allocated funding via a digital voucher system, to purchase training from providers, giving them more choice and control over the training offered to apprentices. Ensuring that you make the right choice and are informed in making that choice will be important. 7 AN INTRODUCTION TO THE LEVY
8 Key facts 8 KEY FACTS The levy applies to England only and came into effect in April If you are a UK employer with a payroll bill that exceeds 3m you must pay the Apprenticeship Levy. The levy rate is 0.5% of your total annual pay bill (gross) and is paid through PAYE. Your pay bill will be based on the total amount of earnings subject to Class 1 secondary National Insurance Contributions (NICs). Payment will be taken monthly in real time, the levy amount taken will reflect your monthly pay bill changes. The number of employees based in England will be calculated on a specific date using address data held by HMRC. The levy is calculated based on your full UK pay bill, however you will only be able to spend your English portion on English Apprenticeship Training. An employer incentive of 1,000 per apprentice will be made to all employers who employ an apprentice aged years old, or those aged with a Local Authority Education, Health & Care (EHCP) Plan. For apprentices under 25 years of age, the secondary Class 1 (employer) NIC will be removed on earnings to the upper earnings limit of 43K). You will pay regardless of whether you train Apprentices or not. You will have a levy allowance of 15,000 per year to offset against the levy you pay. You will receive a 10% monthly top-up from the Government to funds you have for spending on Apprenticeship training. Once you have paid the levy to HMRC, you will be able to access funding for Apprenticeships through a new Digital Apprenticeship Service. Any money reclaimed will be in the form of an e-voucher, where you ll be able to buy Apprenticeship training from approved providers. Levy funding in an employer s digital Apprenticeship account will expire in 24 months. Non-levy paying employers won t use the Digital Apprenticeship Service to pay for training until Non-levy paying employers will make a 10% contribution to the cost of training and the government will pay the rest (90%). Every Apprenticeship standard and framework is placed in 1 of 15 funding bands, outlining the maximum amount that can be used towards training and assessment costs over the length of each Apprenticeship. There are extra employer incentive payments for taking on year olds.
9 Are you a levy paying employer? If you are an employer operating in the UK, with an annual payroll of over 3 million, you will be required to pay a levy of 0.5% of your total UK payroll. The amount entering your Digital Apprenticeship Service (DAS) Account will be how much you have available to spend on Apprenticeship training in England. The Government will apply a 10% top-up to funds monthly at the same time the funds enter your Digital Apprenticeship Service Account. So for every 100 that enters your account to spend in England on Apprenticeship training, you get 110. Levy paying employer example: Annual payroll with 7m (all England) Levy sum 0.5% x 7,000,000 Allowance Annual levy payment 20,000 35,000-15,000 allowance (levy not paid on first 3m) Monthly tax 20,000 / 12 months = 1,667 Monthly credit (10% top up to levy credit) 1,667 x 1 x 1.1 = 1,833 9 ARE YOU A LEVY PAYING EMPLOYER? Annual levy credit 1,833 x 12 = 21,996 If DAS levy credit runs out the system switches to 10% cash contribution in return for 90% ESFA funding. Non-levy paying employer example: Employer of 50 employees, each with a gross salary of 20,000 Gross annual payroll 50 x 20,000 = 1,000,000 Levy payment entry point 3,000,000 Annual levy payment 0
10 10 LEVY PAYING EMPLOYERS ANNUAL SALARY BILL OF OVER 3M Levy paying employers With an annual salary bill of over 3m Funding, tax breaks and incentives. Applicable to levy funded Apprenticeships Employers who wish to train more apprentices than their levy funds will support, will be required to pay just 10% of the Apprenticeship training costs for those additional apprentices. The remaining 90% of the costs will be paid for by the government. Annual salary bill of > 3m EMPLOYER APPRENTICESHIP FUNDING GOVERNMENT APPRENTICESHIP FUNDING NATIONAL INSURANCE TAX BREAK EMPLOYER INCENTIVE APPROVED APPRENTICESHIP TRAINING PROVIDER INCENTIVE COST OF PROVISION OF MATHS & ENGLISH SKILLS FUNDING AGENCY (ESFA) FUNDING RULES For more information call our business managers on
11 16-18 year olds year olds Money drawn from Digital Apprentice Service Money drawn from Digital Apprentice Service Removal of secondary Class 1 (employer) NIC on earnings upto the Upper Earnings Limit (currently 43,000) 1,000 per apprentice 1,000 per apprentice None None 25+ year olds None 11 LEVY PAYING EMPLOYERS ANNUAL SALARY BILL OF OVER 3M 100% funded by the Government Apprenticeships are funded in line with ESFA funding rules Visit For more information call our business managers on
12 The levy How the levy works for levy paying employers 12 THE LEVY - HOW THE LEVY WORKS FOR LEVY EMPLOYERS LEVY PAYING EMPLOYER APPROVED TRAINING PROVIDER Levy paid monthly via PAYE Listed on Register of Apprenticeship Training Providers (RoATP) 10% top up Digital Apprenticeship Service (DAS) Account Choose Frameworks/ Standards & training provider & assessment organisation via RoATP Engages with employer, completes training needs analysis, agrees support GOVERNMENT Employer & training provider identity assurance Manages data & levy payments to training providers
13 Apprentice selected (existing employee or new recruit) Assists with recruitment 1,000 employer incentive per year old apprentice Apprenticeship programme (min 12 months) Regular face-to-face visits and/or campus based learning. All Apprenticeship activities documented Manage Apprenticeship programme & costs via Digital Apprenticeship Service Account Apprenticeship completed Training payment made 13 THE LEVY - HOW THE LEVY WORKS FOR LEVY EMPLOYERS Apprenticeship training data produced Quality assurance
14 14 NON-LEVY PAYING EMPLOYERS - ANNUAL SALARY OF LESS THAN 3M Non-Levy paying employers With an annual salary bill of less than 3m Funding, tax breaks and incentives If you employ less than 50 people, did you know? APPRENTICESHIPS FUNDED IN FULL BY THE GOVERNMENT Employers with fewer than 50 staff who deliver apprenticeships to young people (16-18) will no longer receive the 1,500 AGE grant (expiring at the end of the 16/17 academic year) and will instead have their Apprenticeships funded in full by the Government. Annual salary bill of < 3m EMPLOYER APPRENTICESHIP FUNDING GOVERNMENT APPRENTICESHIP FUNDING NATIONAL INSURANCE TAX BREAK EMPLOYER INCENTIVE APPROVED APPRENTICESHIP TRAINING PROVIDER INCENTIVE COST OF PROVISION OF MATHS & ENGLISH SKILLS FUNDING AGENCY (ESFA) FUNDING RULES
15 16-18 year olds year olds 25+ year olds 15 10% of the cost of the Apprenticeship 90% of the cost of the Apprenticeship Removal of secondary Class 1 (employer) NIC on earnings upto the Upper Earnings Limit (currently 43,000) 1,000 per apprentice 1,000 per apprentice None None 100% funded by the Government None NON-LEVY PAYING EMPLOYERS - ANNUAL SALARY OF LESS THAN 3M Apprenticeships are funded in line with ESFA funding rules Visit
16 There has never been a better time to employ an apprentice Non-levy paying employers How the levy works for non-levy paying employers 90% of employers that take on an apprentice report benefits to their business 71% of apprentices stay with the same employer LEVY PAYING EMPLOYER APPROVED TRAINING PROVIDER Choose Frameworks/ Standards & training provider & assessment organisation via NAS Engages with employer, completes training needs analysis, agrees support 90% of apprentices stay in employment after finishing their Apprenticeship GOVERNMENT Employer & training provider identity assurance
17 Apprentice selected (existing employee or new recruit) Assists with recruitment 1,000 employer incentive per year old apprentice Apprenticeship programme (min 12 months) Regular face-to-face visits and/or campus based learning. All Apprenticeship activities documented Employer pays pre-agreed proportion of costs to training provider (on at least a quarterly basis) Apprenticeship completed 17 NON-LEVY PAYING EMPLOYERS - HOW THE LEVY WORKS Final training payment made Manages data & levy payments to training providers Apprenticeship training data produced Government pays proportion of costs to training provider Quality assurance
18 Digital Apprenticeship 18 Service Account DIGITAL APPRENTICESHIP SERVICE ACCOUNT QUALITY IS THE FOCUS Through the service, this means that employers will be able to find the right Apprenticeship for them. This could range from entry level to degree level Apprenticeships. ONLINE SERVICE The online service then allows those employers to financially manage their Apprenticeship programme and help them to estimate their financial spend. It will help employers to: focus on their business priorities address skills shortages head on invest in the skills and training to help their organisations succeed recruit apprentices with approved training providers. Further information and guidance can be found on the Government s Apprenticeship web pages: The Skills Funding Agency has produced a useful tool to help employers understand what levy they will pay and how they could use the new digital service to plan and fund training.
19 Dudley College can help you to manage your Digital Apprenticeship Service Account Trust your levy with a safe pair of hands at Dudley College. 19 DIGITAL APPRENTICESHIP SERVICE ACCOUNT
20 Existing frameworks v new standards Dudley College are in the process of transitioning from frameworks to standards. Our Business Managers can help you to design your Apprenticeship programme, including the development of any new Apprenticeship Standards, if required. 20 EXISTING FRAMEWORKS V NEW STANDARDS SASE FRAMEWORKS (Multi-occupational) INITIAL ASSESSMENT ON/OFF THE JOB TRAINING Mandatory qualifications include: NVQ technical certificate/combined qualification Maths & English Personal learning & thinking skills Employment rights & responsibilities. COMPLETION & CERTIFICATE OCCUPATIONAL COMPETENCE
21 STANDARDS (Individual standards per occupation) INITIAL ASSESSMENT 21 ON/OFF THE JOB TRAINING GATEWAY END-POINT ASSESSMENT (EPA) Mandatory qualifications include: NVQ technical certificate/combined qualification Maths & English Personal learning & thinking skills. EXISTING FRAMEWORKS V NEW STANDARDS COMPLETION & CERTIFICATE OCCUPATIONAL COMPETENCE
22 From services to facilities, Dudley College can provide it all Enhancing the growth of talent and skills in manufacturing, engineering construction and modern technologies as well as accelerating business success and growth. DUDLEY COLLEGE FACILITIES DUDLEY ADVANCE The centre for Advanced Manufacturing and Engineering Technology Dudley Advance brings first-class engineering training facilities to the region and will offer individuals and employers the best opportunities to develop their skills and businesses. Dudley Advance provides facilities designed for full-time learners, apprentices and businesses including mechatronics, electrical engineering and engineering science, as well as traditional machine tool based engineering and CNC. The Innovation and Enterprise Zone is proving that Dudley College s Advance campus is more than just a training facility. Set up through consultation from local employers, the business lounge at Dudley Advance is focused on supporting local construction, engineering and manufacturing businesses. The facility provides this growing sector with a range of modern facilities and equipment to help SMEs and larger businesses to grow through innovation, including: Access to workspace Meeting and training room facilities Serviced office space Rapid prototyping LAB offering with the use of 3D scanners, 3D printers and a laser cutter Measurement and testing LAB, housing a FARO arm and a variety of testing equipment Access to Computer Aided Design (CAD) software and CNC programming and simulation. 36 MILLION Invested in new training centres and facilities for businesses and apprentices. We annually deliver training to over 12,000 LEARNERS
23 DUDLEY ADVANCE II The training centre for Advanced Building and Environmental Technologies - Partnering with employers to shape our future curriculum, Advance II provides Apprenticeships at advanced and higher levels, upskilling for businesses and full-time courses for year old learners. A 37,000sq ft purpose-built centre, the first of its kind in the Further Education sector includes: Construction, manufacturing and fabrication centre Digital centre for Building Information Modelling (BIM) Carbon friendly technology centre Four-storey internal building site called The Hangar High-tech laboratories CAD/CAM facilities IT learning centre Recreational and study spaces. 23 DUDLEY COLLEGE FACILITIES Training in new and innovative construction methods based around four key areas: 1. Digital technologies - building information modelling (BIM), home automation and building management systems. 2. Efficient and effective ways of constructing e.g. pre-fabricated modular construction techniques. 3. Fabrication and welding for offsite production including sheet metal work and welding. 4. Environment technologies - sustainable construction methods and green technologies.
24 How to find Dudley College J K The Broadway Campus The Broadway, Dudley, West Midlands DY1 4AS Dudley Evolve Tower Street, Dudley, West Midlands DY1 1AF Dudley Aspire The Broadway, Dudley, West Midlands DY1 4AR Dudley Create The Broadway, Dudley, West Midlands DY1 4AR Dudley Sixth Ednam Road, Dudley, West Midlands DY1 1HL Priory Villa Ednam Road, Dudley, West Midlands DY1 1HL Dudley Enhance Ednam Road, Dudley, West Midlands DY1 1HL Dudley Advance Centre for Advanced Engineering and Manufacturing Technology Priory Road, Dudley, West Midlands DY1 4AD Dudley Advance II Centre for Advanced Building Technologies Opening 2017 Motor Vehicle Centre Wolverhampton Street, Dudley, West Midlands DY1 3AH Priory Road 3G Football Complex - Priory Road, Dudley, West Midlands DY1 4AD For more information, get in touch with our business managers today Call: employerservices@dudleycol.ac.uk Visit:
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