Management Information Sheet

Following on from MI sheet 5/17, we have provided a look up list for schools, to identify if under the current Department of Education guidance, they will be eligible for the 0.5% Apprenticeship Levy. Please click on the link.

This Department of Education paper clarifies that:

• The local authority's levy contribution will include the pay bill for those maintained schools where the local authority has residual employer responsibilities i.e. community and voluntary controlled schools.
• The DFE document states that 'We expect the cost of the levy to be passed on to schools in the same way that employer National Insurance and superannuation is.'
• Community/VC schools will have to make provision for the relevant cost of the levy in their individual budgets, in the same way as other payroll costs e.g. National Insurance etc. The impact of the levy cost to these schools remains a subject of debate, revealed in recent press articles.
• The local authority will hold the digital account and these schools will be able to access that account for funding for apprenticeship training.

Where the pay bill is over £3 million:

• Foundation and VA schools employ their own staff so will be responsible for paying the levy.
• Trusts of standalone academies will be responsible for paying the levy where they are the employer responsible for paying Class 1 secondary NICs.
• Multi academy trusts (MATs) generally employ the staff in their academies, and will be responsible for paying the levy.

All of the above employers will have their own digital account and will be responsible for managing this.

Where the pay bill is under £3 million:

• Foundation, VA schools, standalone academies and multi academy trusts with a pay bill of under £3 million, will not have to pay the levy. However, if they want to offer apprenticeships, they will be able to access funding which only requires them to pay 10% of the training costs of each apprenticeship. The government will pay the remaining 90%.
• If these school/academies have under 50 employees the government will pay 100% of the training costs for any apprentices who are aged 16-18.

Budgeting

We will provide further advice on how the charge will made to Community/VC schools that are on the Norfolk County Council payroll.