Employers will have to sign Apprenticeship Levy contract with the SFA

16 Sep 2016 02:33 PM

FE week revealed today that employers will have to sign contracts with the SFA to ensure there is no "gaming" of the system. Deputy CEO, Antony Walker, comments.

Today, FE Week reported that employers would have to sign contracts with the Skills Funding Agency - rather than just with providers, as businesses had expected.

An SFA spokesperson said there would be a contractual agreement between the SFA and the employer to ensure large employers would not auction access to their future apprenticeship levy pot to the highest bidding training provider.

Deputy CEO, Antony Walker, comments:

“The revelation that businesses will have to sign a contract with the Skills Funding Agency comes as an unwelcome surprise to tech companies. The sector’s concerns with the Levy are well-documented. There is real concern about a lack of clarity on key elements to the Levy, making it difficult for businesses to plan.

The Department for Education has been listening to concerns so we hope they will provide clarification on what these contracts mean for Levy-paying companies. The Levy comes into force in April 2017 so it is concerning to see brand new developments emerging at this stage. Businesses need clarity if this is going to work.”

For more on techUK's work on the Apprenticeship Levy, please see:

>>techUK response to Apprenticeship Levy Guidance Consultation

>>Important questions still remain in Government's appraoch to apprenticeships 

>>techUK response to the latest Levy guidance documents

>>Our breakdown of Apprenticeship Levy developments