Pathway College - The Apprenticeship Levy and Digital Apprenticeship Service (DAS)

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The Apprenticeship Levy and

Digital Apprenticeship ServiceJuly 2016 Update


Key changes for providers

• New apprenticeships funding model using price bands and a simpler funding model

• Expected to move to financial year funding for all employers

• New register of apprenticeship training providers• New contracting model for providers covering levy and

non levy paying employers


Employer (levy) commitment and contracting

OUTPUT:Levy commitment is

recorded in the digital apprenticeship service and appropriate contracts are

in place.

6April 2017 - HMRC begins collecting the

apprenticeship levy from large employers

The Digital apprenticeship

service goes live.

Digital apprenticeship service registration

verifies the identity of an employer. The

employer registers to create a digital

apprenticeship service account. The

employer verifies & links PAYE scheme(s) to their account. The employer can then

view their levy account balance.

The SFA maintains a library of

apprenticeship standards and a

catalogue of providers’ course offerings helping

employers search and select the right

Provider andstandard. The SFA provides a ‘recruit an apprenticeship’

service for employers.

The employer and provider agrees a

price and the employer records the details in the

digital apprenticeship

service initiating the ‘double-lock’ which will be confirmed by the provider via ILR

returns.

The SFA issues an agreement to the selected provider, with a schedule to cover the value of the deal, or update

the existing agreement if this is not the first deal.

The provider can now begin

delivering the apprenticeship.

The SFA is able to manage the

apprenticeship budget by

monitoring and forecasting levy commitments.

TRIGGER: The digital Employer registration Search and Select Commit levy funds Agree contracts OUTPUT: Levy commitment is

recorded in the digital


Employer (non-Levy) ProcessSFA procures

non-levy provision

A contract is agreed with

providers

Employer and provider agree

deal

Provider submits ILR

SFA pays funding

Employer pays contribution

The SFA invite and select those providers on the

register of apprentice

training providers to tender to

deliver co-funded apprenticeship education and skills training.

A contract for services between the SFA and the

provider to deliver non-levy funded apprenticeship

education and skills training is agreed.

A non-levied employer agrees a deal with an SFA-approved provider

to deliver apprenticeship

education and skills training.

The SFA monitors the performance of

a provider delivering non-levy funded apprenticeship

education and skills training through

monthly ILR submissions.

The SFA calculates the funding due to the provider and

payment is made.

The employer pays the agreed

contribution.


Delivery and achievement

A training provider from the list of pre-approved training providers has an

ancillary agreement in place to provide

training to a levied employer.

Providers submit on a monthly basis an

ILR containing:• Start Date• Employer

• Apprentice Details

• Learning aim code

• Agreed price

SFA checks that the details in the ILR match with the details in

digital apprenticeship

service

The SFA will calculate the funding earnt by

the provider.• SFA pays from

levy at full value• SFA pay any

outstanding balance at co-

funded rate

The provider will submit evidence of completion to

the SFA.

The SFA are able to track government

funding being used to pay providers for

apprenticeship training.

Trigger: Apprenticeship

Start Provider submits ILR Double Lock Calculate funding&

payment

Achievement Payment.

End point assessment if required

OUTPUT: Apprenticeship

certification completed


View the current balanceof your levy and expiringfunds that you might lose


Key funding policy decisions

• Single funding model• 10% monthly top-up• Approach to co-investment• Funding of 16-18 year olds• Funding for additional needs• Funding for English and maths training• Incentives


Key funding policy decisions – in discussion

• Approach to funding equivalents and lower level qualifications

• Level of co-investment• Transfer of funds between employers• Setting of price bands

Education

Pathway College - The Apprenticeship Levy and Digital Apprenticeship Service (DAS)