Are you ready for the Apprenticeship Levy?

Monica Or, columnist and Hospitality Consultant at Star Quality Hospitality Consultancy discusses the new hospitality apprenticeship standards and how the Apprenticeship Levy will work..

Apprenticeships date back to the middle ages but these days the way Apprenticeships work is changing. Apprentices are aged 16 or over, in employment and studying for a work based qualification.

There are currently 7 new Hospitality Apprenticeship standards:
Level 2 – Commis Chef / Hospitality Team Member
Level 3 – Chef de Partie / Production Chef / Hospitality Supervisor
Level 4 – Senior Culinary Chef / Hospitality Manager

With the new Apprenticeships there must be a genuine need of training for at least 12 months in a new job role. This means that an existing employee can carry out an Apprenticeship as long as their role is new and they need training in it.

There is no mandatory qualifications, the training is flexible which means the employer can choose the methods in which they train their staff. 20% of the training must be off job, so an example of this could be using online learning.

The employer needs to be confident that their apprentice is competent. Then after their 12 months apprenticeship training an independent assessor will carry out the end assessment whereby the apprentice will be graded with a pass or distinction.

The Apprenticeship Levy comes into force on the 6th April 2017 for all employers in the UK:
– With an annual pay bill of £3 million or over.
– Payable at a rate of 0.5% of the employers’ pay bill
– All employers will receive a £15,000 allowance to offset against their levy payment.
– The government will pay a 10% top up for each apprentice.
– If Apprentices are between 16 – 18 years there is an additional £1,000

Small businesses with under 50 employees are non levy paying and will not have to make any cash contributions.

Large businesses with over 50 employees who are non levy paying will have to make a contribution of only 10%.

Each Apprenticeship Standard will have a maximum funding amount. There are 15 funding bands ranging from £1,500 to £27,000.

To get started as an Employer:
– You need to have set up a Digital Apprenticeship Service (DAS) Account.

Through the online apprenticeship service all employers will be able to:
– select an apprenticeship standard
– choose the government approved training provider(s) you want to deliver the training
– choose the government approved organisation that will assess your apprentices
– post apprenticeship vacancies

If you are an employer who pays the levy, you can also use the apprenticeship service to:
– set the price you’ve agreed with your training provider
– pay for apprenticeship training and assessment
– stop or pause payments (for example, if your apprentice stops their training, your apprentice takes a break from training or you haven’t received the service you agreed with the provider)

Further guidance can be found from:
https://www.gov.uk/government/publications/apprenticeship-levy-how-it-will-work

About Monica Or: As the founder of Star Quality Hospitality Consultancy, Monica specialises in working operationally with the owner/managers of independent hotels and restaurants focusing on their business structure and service delivery. She is the Amazon Best Selling author of ‘Star Quality Hospitality – The Key to a Successful Hospitality Business’ and ‘Star Quality Experience – The Hotelier’s Guide to Creating Memorable Guest Journeys’.
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