Apprenticeship Levy

What is the apprenticeship levy?

The Apprenticeship Levy applies to all organisations (public & private sector) based in the UK with a payroll of £3 million plus. As such, employers will pay a levy on their whole pay bill at a rate of 0.5%.

Apprenticeships consist of off-the-job training, and on-the-job training. Off-the-job training must be at least 20% of the apprenticeship duration, and could include regular day release for classroom sessions, practical training e.g. shadowing/mentoring, and industry visits. On-the-job training helps develop specific skills in the workplace and should be overseen by a workplace mentor. Benefits of apprenticeships include increasing employee satisfaction, reducing staff turnover, and reducing recruitment costs.

Industry has now recognised that there is a vast skills shortage in the Supply Chain and only by investing and the upskilling of procurement professionals would this help facilitate growth.

As a result, the Apprentice levy can now be used to train existing procurement professionals via the Commercial Procurement and Supply Apprenticeship standard (previously known as Public Sector Commercial Level 4 Apprenticeship). This standard is suitable for all organisations.

This the Apprenticeship is usually delivered over a 2-year period, where the Apprentice will complete the CIPS Level 4 Diploma course before completing an End Point Assessment. This consists of a case study and panel interview supported by a showcase portfolio to ensure the training is being deployed.

CIPS Apprenticeship Levy

Our role

CIPS Diploma in Procurement and Supply Operations is a prerequisite for beginning the end-point assessment. As a Centre of Excellence Chamber Business Training are now partnering with our chosen Apprentice organisation Encompass Developments to deliver the Commercial Procurement and Supply Apprenticeship standard training programme across the UK.

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What if i do not pay apprenticeship levy?

Government funding also exists for SME’s. 95% of the cost of the CIPS Apprenticeship will be government funded, leaving your organisation to pay the remaining 5% of the total cost. The training must still be delivered by an approved apprentice provider and the Apprenticeship must be an approved standard or framework. Further information can be found through the National Apprenticeship Service.

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