Apprenticeships and Funding
What Apprenticeships are offered?
The new Apprenticeship Standards provide an excellent opportunity to add real value to the training received by your staff, funded through the Apprenticeship scheme.
We offer the following apprenticeships:
- Accounts/Finance Assistant Apprenticeship (Level 2) (AAT)
- Assistant Accountant Apprenticeship (Level 3) (AAT)
- Professional Accounting Technician Apprenticeship (Level 4) (AAT)
- Accountancy / Taxation Professional Apprenticeship (Level 7) (ACA)
Scroll down to find out how you could access up to £4,000 in wage subsidies if you recruit a new apprentice before 31 January 2022.
Assessment of these Apprenticeships will be by an “End Point Assessment” and will be graded “Pass” or “Distinction”.
Under our programme, this will include two elements:
The Synoptic exam tests some of the units and the overall understanding of the course.
Based on the knowledge, skills and behaviours developed in the workplace over the period of the Apprenticeship.
How is the Apprenticeship Delivered? What Training is Provided?
This is a blended programme of learning. Our Level 2 materials comprise on-line interactive presentations with voice-overs and tons of practice activities. At Levels 3 and 4 we introduce more traditional study manuals alongside the on-line materials.
We also run “Drop-in” tutor supported sessions at our venues in Exeter, Falmouth, Plymouth and Taunton. Some of our apprentices attend every week for the whole day, some for half a day, and some as and when they need to. Because of the distances involved, some study from their offices. Where apprentices don’t attend the drop-in sessions, their personal tutor will contact them each week to monitor progress and provide any tutor support required. They are also available throughout the week to answer questions by email or phone and to mark progress tests and give feedback
Apprenticeship Key Points
- It will take 13 plus months to complete the Accounts / Finance Assistant Apprenticeship (Level 2).
- It will then take between 13 and 16 months to complete the Assistant Accountant Apprenticeship (Level 3) (dependant on how much level 2 learning is required).
- It can then take 13 to 18 months to complete the Professional Accounting Technician Apprenticeship The programme is effectively “Roll-on-Roll-off”, meaning the Apprenticeship can start at any time throughout the year, not just September.
- The Accountancy / Taxation Professional Apprenticeship (Level 7) will take between 3.5 and 4 years to complete.
- Apprentices must be allocated 20% of their paid hours for off-the-job training.
- The employer contribution to the cost of the training is now limited to 5%. For those who are levy payers, this 5% contribution is only on the any balance remaining after their levy has been utilised. This means that, for example at Level 3 the course cost is limited to a maximum of £400 + VAT, spread out over the duration of the apprenticeship.
The requirement to comply with the 20% rule for off-the-job training has been a thorny one and employers have adopted differing approaches to dealing with it. However, AELP (the Association of Employment and Learning Providers) have issued guidance on the application of the rule, which will hopefully make compliance much easier to plan for and to evidence.
Sections of the guidance are quoted below. Do please ask us if you would like a copy of the full guidance emailed to you and would like to discuss its implementation.
“Off-the-job training is defined as “training received by the apprentice, during the apprentice’s normal working hours, for the purpose of achieving their apprenticeship. It is not training delivered for the sole purpose of enabling the apprentice to perform the work for which they have been employed. [It must be…] directly relevant to the apprenticeship framework or standard, teaching new knowledge, skills and behaviours required to reach competence in the particular occupation. (ESFA 2017/18 Apprenticeship Funding Rules)”
“When someone is in a new job or in a job where there is significant training required to be fully productive then even doing ‘normal’ tasks to get up to speed can feel like “training”. Where this training also teaches the knowledge, skills and/ or behaviours required by the apprenticeship it can be included as off-the-job training. However, training that is only required for the job and not relevant to the apprenticeship cannot be included.”
“The expectation is that off-the-job training is specifically to support the development of new behaviours and also skills and knowledge linked to the actual vocational occupation.”
When you take on a new member of staff, practically everything they do will be new to them as they will be developing new knowledge, skills or behaviours. This should therefore be recorded as “off the job training” (o.t.j.t.) on our training logs and entered onto the weekly log on Moodle. A high proportion of their total o.t.j.t might therefore be achieved in their first 3 or 4 months in the office and/or after moving departments or taking on a different role. If this wasn’t initially identified or recorded, a “catch up” entry should be made – provided their training log justifies this.
Prior to the current year’s intake (and the progression of existing Level 3 Apprentices to Level 4), you may therefore wish to review your current policy with regards to the more formal “study leave” granted during paid working hours.
We will work closely with you and your apprentices to draft an outline plan of how this o.t.j.t. will be achieved over the period of the Apprenticeship. An added benefit of getting apprentices to record this “in office” o.t.j.t. is that they will better recognise that they have learned new skills and behaviours in the office and will value this more. This is, of course, the traditional training route in the profession – when one took one’s Articles and most learning was performed in the office.
If you would like to discuss the application of the rules to your own situation, do please let us know and we will get back to you. Please call 01392 435349 or email [email protected]
Alternatively, please click the button below for more a more detailed explanation of the rules:
The great news is, due to an extension of the current incentives being offered by the government, employers can claim up to £4,000 per apprentice in wage subsidies if they recruit an apprentice before 31 January 2022 (the deadline and incentives have been extended from 30 September 2021). The current incentives are:
- Claim £3,000 wage subsidy per apprentice employed, regardless of how old they are.
- Employers can also claim £1,000 in wage subsidies per apprentice employed who is aged between 16-18 years old.
In order to meet the funding criteria, employers will need to:
- Have recruited a new apprentice between 1 October 2021 and 31 January 2022.
- Enrol them on their apprenticeship before 31 March 2022.
- Make their application to claim this apprenticeship funding between 11 January and 15 May 2022.
Employers who recruited a new apprentice before the previous funding deadline of 30 September 2021, have until 30 November 2021 to enrol them onto an apprenticeship and start claiming the incentive.
50% of the wage subsidy will be paid after 3 months of employment and the remaining 50% is paid after 12 months. In addition, employers with less than 50 staff will not need to pay their 5% contribution for these 16-18 year olds.
In addition to the above wage subsidies, 95% of an apprentice’s training costs can be covered by apprenticeship funding. This increases to 100% if they are aged 16-18 and their employer employs less than 50 staff.
The Apprenticeship Levy applies to employers with payroll costs of more than £3 Million p.a. These employers will pay a levy of ½% on the excess over £3 million via the PAYE system into a digital apprenticeship account. This is calculated on a monthly basis.
They can then use this to contribute to any apprenticeship training purchased. If not used, these funds will “expire” and so there is therefore a clear incentive to employ apprentices. “Use it or lose it.”
If the levy paid into their Apprenticeship Service account has been fully utilised, 95% of the additional training cost is covered by a contribution from the government and the remaining 5% from the employer.
Employers with payroll costs of less than £3 Million p.a. will not pay the Apprenticeship Levy. However, since January 2020, they can register on the Digital Apprenticeship Service to enable us to access funding in the same way as for levy paying employers. The employer contribution to the course fees are currently limited to 5%.
However, as mentioned above it could be possible to access free apprenticeship training if the apprentice is aged 16-18 and the employer employs less than 50 staff.
Employers who do not pay the Apprenticeship Levy can reserve their funding with the Apprenticeship Service three months before their apprentice’s expected start date. NB This period was reduced from six to three months from 1 November 2021. Employers can extend the three month period by a further two months, if they require more time for the apprentice to start. However, the reservation will expire at the end of the extended period if no commitment has been made with the Apprentice Service by then.
The funding aspect of training an apprentice can be a little daunting from the outset, but don’t worry we can explain how you can access the funding and what’s involved during each step of the process.
The regulations above are correct at the time of writing and are subject to change at the discretion of the government.
Supporting Apprentices - A Guide for Managers
For a copy of our comprehensive guide for managers on supporting apprentices, please click on the button below:
