The government has finally unveiled the detail behind its plans to fund apprenticeships and how it plans to make the levy work.
In a flurry of announcements, delivered to both head off criticism that earlier planned cuts would have hit less privileged applicants, and to reveal the detail about how it plans to bankroll the three million new apprenticeships the government claims will be created by 2020.
In a written statement, education secretary Justine Greening said the government would provide an additional 20% payment to train 16-18 year olds while keeping a ring-fenced support mechanism of around £60m to ramp up funding in disadvantaged areas.
Among the key measures announced today are that 100% of training costs will be paid by government for employers with fewer than 50 staff who take on apprentices aged 16 to 18 years old. This will also apply to smaller employers who take on 19- to 24-year-olds who were in care, or 19- to 24-year-olds with an education and health care plan.
Cambridge Regional College principal Mark Robertson dubbed the levy "a game-changing approach to the training and development of people across the country's largest organisations" while Leo Quinn, Group CEO at Balfour Beatty, said "as employers we have a responsibility to train the next generation with the skills that our businesses will need to drive the British economy forward in the decades ahead".
Another employer-centric fillip is enabling companies to transfer their digital funds to other employers in their supply chains, sector or apprenticeship training agencies in 2018. A new employer group that includes the Confederation of British Industry (CBI), the Federation of Small Businesses (FSB) and the British Chamber of Commerce (BCC) will be forged to help the government develop it and ensure it works for employers.
The register of apprenticeship training providers is now open for applications.