April 12, 2017

DPG is now an apprenticeship provider!

As an apprentice provider, we can either work with organisations as a direct employer running your apprenticeship programme, or we can work in partnership through our preferred lead apprenticeship provider. We are also very happy to work with apprenticeship lead providers who want to forge strong networks in this area. Find out more about how DPG can support you.

As of April 6th, all employers with an annual wage bill of over £3 billion are liable to pay the new levy.

We have already written about this at DPG, but let’s recap anyway, because it is important that HR and L&D know exactly what the apprenticeship levy is, why it’s being introduced and how it will affect organisations. Then we will tell you a bit about DPG and the fact that we have recently been approved as an apprentice provider.

Firstly, the apprenticeship levy itself. The government is changing the way that it funds apprenticeships in England, as of April 6. From then on, all organisations with a wage bill that exceeds £3 million a year will have to pay the levy at a rate of 0.5% of their wage bill. What is the wage bill? It is defined as the total earnings of all employees in an organisation.

All companies will receive an offset allowance of £15,000, which is equivalent to 0.5% on a payroll of £3 million. They will receive this in monthly installments of £1,250. The new levy is replacing all taxpayer funding of apprenticeship for companies of all sizes.

There are two other dates that HR needs to be aware of, in addition to the introduction of the levy on April 6. Firstly, it is that all UK employers that will be liable for the levy are obligated to declare themselves to the HMRC by 22 May 2017. Secondly, the principles that apprenticeship funding will operate on come into force on 1 May 2017, whether an employer is liable to pay the levy or not.

The levy will be collected each month through the PAYE system, same as Income Tax and National Insurance Contributions are collected. Single employers who have multiple PAYE schemes will have just one allowance. Levy payments will not count towards corporate tax deductions and companies will be able to access their funding from 1 May 2017.

So, that’s the legal information about the levy. Why is it being introduced? It is being introduced because the government thinks larger businesses should shoulder the responsibility of increasing apprenticeship numbers. The target is that the scheme will generate £3 billion a year, a sum that will be used to meet another target – the funding of 3 million apprentices by 2020.

The government wants UK businesses to build an apprenticeships culture and has set out its proposals in a document entitled ‘English Apprenticeships: Our 2020 Vision’.

It is important to note that apprenticeships are a devolved policy, so how England manages its apprenticeship programme is different to how it is managed in Northern Ireland, Scotland and Wales.

As well as overhauling the apprenticeship system, the government has also set up a new Register of Apprenticeship Training Providers. We, at DPG, are now on that new list.

So, why have we been chosen as an apprenticeship provider and what do we offer? DPG is a specialist support apprentice provider and as such we will be offering HR, L&D and Leadership and Management standards. We have been chosen because of our experience, expertise and standing in the profession. We have over 25 years’ experience of helping people develop their HR, L&D and Leadership and Management capabilities. We also have long standing partnerships with the CIPD and ILM.

What else do we offer as an apprentice provider? There’s access to our award-winning DPG community, excellent customer and Feefo ratings, expert facilitators, a Learning Management System ‘Enable2’ provided by Virtual College (eLearning Provider of the Year 2015/16) and a robust Quality Assurance process.

We can tailor our apprenticeship offering according to your needs, whether you are a large employer or an SME. To find out more, email us at apprenticeships@dpgplc.co.uk or call us on 0330 660 0220.