1. What the new levy means for employers big and small Gemma Gathercole Head of Policy – FE & Funding April 2016

2. Levy Employer paybill £3M Will pay levy at 0.5% Employer paybill £2M Levy offset by levy allowance Employer paybill under £2M Not eligible for the levy

3. Defining the paybill Will be based on total amount of earnings subject to Class 1 secondary NICs Levy calculation will include earnings below the secondary threshold

4. Examples Example 1: an employer who would pay the levy An employer with an annual pay bill of £5,000,000: levy sum: 0.5% x £5,000,000 = £25,000 subtracting levy allowance: £25,000 - £15,000 = £10,000 annual levy payment Example 2: an employer who would not have to pay the levy An employer with an annual pay bill of £2,000,000: levy sum: 0.5% x £2,000,000 = £10,000 subtracting levy allowance: £10,000 - £15,000 = £0 annual levy payment

5. Digital Apprenticeship Service Select an apprenticeship framework/standardChoose the training provider(s) you wish to useChoose an assessment organisationPost apprenticeship vacancies From April 2017 for levy payers By 2020 for all employers Pay for training and assessment services

6. Buying apprenticeship training Starts before April 2017 All employers use the same system Apprenticeships will be funded for the duration of the programme under the T&Cs determined at the start of their programme Starts April 2017 onwards All employers will choose apprenticeship – framework or standard All employers will choose their training provider & assessment organisation Paying for training Levy payers – directed through your digital account from your levy payments (and/or any top- ups) Non-levy payers direct to training provider through negotiated schedule Co- investment If levy payments are insufficient for training or if a non-levy paying employer Will have to pay a contribution and government contribution will top-up to the agreed price, subject to a band maximum

7. Timeline June 2016 Provisional information on funding Provisional information on government support Provisional information on 16-18 apprentice uplift October 2016 Final levels of funding, government support, 16-18 & English and maths support Full, draft, funding and eligibility rules December 2016 Final detailed funding and eligibility rules Employer guidance from HMRC on how to calculate and pay the levy April 2017 Levy implementation New funding system for non-levy payers

8. Thank you Gemma.Gathercole@ocr.org.uk @G_Gathercole