26 Aug 2016

Levy will slash apprenticeship funds, warns CITB    

Government’s new levy could hit funding for apprentices by up to 30%

The government’s new apprenticeship levy could cut funding for construction apprenticeships by up to 30%, the CITB has warned.

The training body said the levy’s proposed funding bands would see funding for construction apprenticeships cut by 20-30%, and could put training providers off offering construction training.

Contractors could also be dissuaded from taking on apprentices if they have to make up any gap in funding, the CITB warned in a statement.

As part of the levy plans, new standards will be introduced for apprenticeship types with funding capped across sectors.

But while standards for some sectors have been approved by employer-led groups, no construction standards have been approved – a process the CITB said could take up to 18 months, meaning providers will have to use the existing framework, which is due to have its funding cut in April next year.

Firms will have to begin paying the levy from 6 April next year and will be able to start claiming funding from the following month.

In a statement, the CITB’s head of apprenticeships, Steve Hearty, warned the proposed funding bands “raise real concerns for the construction industry.”

He said: “We support the new, employer-designed standards, because we think they will improve the quality of apprenticeships, and it is encouraging to note that Government state these will be funded at a higher rate than those recently published.

“However, no standards for construction have yet been approved and we are still working under the existing frameworks system and may well continue beyond 2017.

“Even with the sector beneficial STEM increases to funding the Government’s proposed funding bands will cut funding for construction apprenticeships by between 20% and 30%.

“We are concerned that training providers could stop training or they could ask employers to make up the shortfall in cost, which might deter firms from taking apprentices on.

“We have shared our concerns with [the Department for Education] and will be doing formally through the formal consultation process that closes on 5 September. Employers can do the same.”

16 Aug 2016

What does the apprenticeship levy mean for you?

Here’s what you need to know about the government’s new apprenticeship levy, the details of which have been revealed today.


All apprenticeship starting before 1 May 2017 will be funded through existing rules.

The new system has 15 funding bands. Each type of apprenticeship will be placed in a specific band, the caps for which range between £1,500 and £27,000 depending on the apprenticeship type.

The government will simplify the funding system for apprenticeship frameworks, which will no longer allocate funding based on the age or location of the apprentice.

Employers who will not pay the levy, or do not have sufficient funds to cover monthly training costs, will be required to co-invest 10 per cent of the cost, while the government will pay the remaining 90 per cent.

How co-investing will work

Employer chooses apprenticeship in band 9 with a maximum price of £9,000 Employer negotiates a price of £8,500 with their provider Government co-invests 90 per cent = £7,650 Employer co-invests remaining 10 per cent = £850 Employer and provider agree to spread this over 10 instalments of £85

Small employers (those with 50 staff or less) will not be required to contribute towards the cost of training apprentices, with the government covering the cost for care leavers or those in Local Authority Education, Health and Care plan aged 19-24.

Employers with apprentices aged 16-18, as well as those detailed below who have been in care, will receive an additional £1,000 and a further £1,000 to cover any additional training costs.

Employers should be able to use their funds in a digital account and benefit from government co-investment support to pay for training apprentices whose main place of work is in England.

Training providers will receive up to £150 a month from the government to support apprentices with learning difficulties or disabilities.

They will also receive £471 from the government for English and maths qualifications gained by apprentices.

Employers will need to show that individuals will gain “substantive new skills” in order to secure government co-investment in training.

Contractors will be able to transfer up to 10 per cent of their annual funds to subcontractors or other employers from 2018.

Apprenticeship pathway  Level  Provisional max funding band value
Accessing and Rigging 2 £6,000
Applied Waterproof Membranes 2 £6,000
Building Control 3 £9,000
Built Environment and Design 3 £6,000
Chartered Surveyor 6 £27,000
Civil Engineering for Technicians 3 £9,000
Cladding Occupations 2 £6,000
Construction and Building Services Management and Supervision (Sustainability) 4 £12,000
Construction Contracting Operations 3 £9,000
Construction Operations 2 £4,000
Construction Site Management 6 £12,000
Construction Site Supervision 4 £12,000
Decorative Finishing 3 £9,000
Decorative Finishing and Industrial Painting 2 £6,000
Fitted Interiors 2 £5,000
Floorcovering 2 £5,000
Formwork Occupations 2 £6,000
Foundation Degree in Architecture 5 £12,000
Foundation Degree in Built Environment 5 £12,000
Foundation Degree in Civil Engineering 5 £12,000
Foundation Degree Professional Practice in Construction Operations Management 5 £12,000
Geomatics Data Analysis 3 £9,000
Heritage Skills 3 £6,000
Highways Maintenance 2 £5,000
Insulation and Building Treatments 2 £3,500
Interior Systems 2 £5,000
Maintenance Operations 2 £5,000
Management Quantity Surveying and Commercial Management 6 £12,000
Mastic Asphalting 3 £9,000
Mastic Asphalting 2 £6,000
Occupational Work Supervision 3 £5,000
Plant Maintenance 3 £12,000
Plant Maintenance 2 £9,000
Plant Operations 2 £4,000
Plastering 3 £6,000
Plastering 2 £6,000
Property Maintenance Operative 2 £9,000
Roadbuilding 2 £4,000
Roofing Occupations 3 £12,000
Roofing Occupations 2 £6,000
Science Industry Maintenance Technician 3 £27,000
Specialist Concrete Occupations 2 £5,000
Steelfixing 2 £4,000
Steelfixing Occupations Major Projects 2 £9,000
Stonemasonry 3 £9,000
Stonemasonry 2 £6,000
Surveying 3 £6,000
Surveying Technician 3 £9,000
Sustainability 5 £12,000
Thermal Insulation 3 £6,000
Thermal Insulation 2 £4,000
Town Planning Technical Support 3 £9,000
Transport Planning Technician 3 £12,000
Trowel Occupations 3 £6,000
Trowel Occupations 2 £5,000
Tunnelling Operations 2 £5,000
Wall and Floor Tiling 3 £9,000
Wall and Floor Tiling 2 £5,000
Wood Occupations 3 £9,000
Wood Occupations 2 £6,000
Woodmachining 2 £6,000