To receive an overview of the Apprenticeship Levy and to understand the budgetary and HR implications of the levy.

The Forum received a report which provided an overview on the Apprenticeship Levy and to understand the HR implications of the Levy.

During discussions the following was noted:

1.    An apprenticeship levy of 0.5% of the employer’s total pay bill will be in place from April 2017.

2.    Schools where the local authority is the contractual employer will need to be included in the calculation for the Levy that will apply to Central Bedfordshire Council.  This will therefore include, all Community and Voluntary Controlled schools.

3.    Those schools where the governing body is considered to be the employer (Foundation, Voluntary Aided schools and Academies) with a pay bill of over £3 million will be subject to the Levy and will have to calculate their own liability and make arrangements for payment.

4.    The Levy can be used to support the funding of  training for existing members of staff, in accordance with published criteria, for example, a Masters after a Degree as well as for apprentices. There would be a cap of 0.5% on the amount of the Levy schools can claim back to ensure that the levy is proportionately distributed between schools and the corporate structure of the Council. 

5.    The government will top up the digital account by 10% each month.

6.    The Levy is non refundable. Any underspend would be returned to the Government.

7.    Unknown elements of the Levy are the mechanism for accessing money and how the Levy will be paid.  Clarification was also needed about the 15 bands of the new funding system.

In response to questions, the Forum noted the following:

·         For some schools, the 0.5% of the Levy costs they could claim back would be a very small amount and would not cover many training costs. The Levy is effectively is a flat tax that cannot be claimed back, if not used.

·         The introduction of the Levy could have a big impact on some schools.

·         It was important that schools in the categories subject to the Levy were aware that this was another payment that needed to be included in their budget.

·         When information about the Levy was disseminated to schools, it would be helpful to include the date of when the decision to introduce the Levy was made and to give advice on how Mainstream schools can access the funding.

·         Imaginative and collaborative ways of using the Levy were needed in order to ensure good use of funds.

NOTED

1.     the content of the report and its financial impact on Maintained Schools and in particular Community and Voluntary Controlled Schools, Nurseries and Special Schools;

2.     that the information provided in relation to accessing funding for training for apprenticeships in schools subject to receipt of further, more detailed information in the Spring Term;

3.     that further information would be provided in the Spring term 2017 to Community and Voluntary Controlled Schools in order to support financial planning;

4.     that further information and guidance would also be provided when known through the Central Essentials bulletin and at a future meeting of the Schools Forum.