Apprenticeships policy, England 2015

This note provides a summary of current apprenticeships policy and developments in England in 2015-16. The Government has made a commitment of three million new apprenticeships starts in England between 2015 and 2020. Apprenticeships are full-time paid jobs which incorporate on and off the job training. A successful apprentice will receive a nationally recognised qualification on the completion of their contract. There are over 200 different types of apprenticeships currently available in England, through existing apprenticeship frameworks. New employer designed apprenticeship standards are being developed to replace the current apprenticeship frameworks. Traineeships are available for unemployed people with little work experience who can be prepared for employment or an apprenticeship within six months. The Government contributes towards the training an apprentice depending on the apprentices age. A grant of £1,500 is also available to some small employers taking on an apprentice aged 16 to 24. From April 2016 no employer will pay secondary Class 1 (employer) national insurance contributions for apprentices under 25 earning up to the Upper Earning Limit.

In the 2015 Queen's Speech the Government set out its intention to create a duty to report on progress to meeting the target of three million new apprenticeships by 2020. Public sector bodies will be required to employ apprentices and be set targets to increase apprenticeship numbers. The Welfare Reform and Work Bill includes an obligation for the Government to report each year on the progress made towards meeting this target. The Government has also announced that it would give apprenticeships the same legal treatment as degrees and protect the term 'apprenticeship', in the Enterprise Bill. In line with recommendations from the Richard Review, new apprenticeship standards are being developed by employer led groups known as 'trailblazers'. A new funding pilot is being trialled for these standards giving employers greater control over spending on training delivery. The modalities of the Apprenticeship levy were announced in the Spending Review and Autumn Statement 2015. The levy will be rolled out in April 2017 and paid by two per cent of UK employers. It will raise over £3 billion a year by 2019-20, £2.5 billion of which will be spent on apprenticeships in England only. This is the highest investment in real terms ever made for apprenticeships.

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