The Pensions Management Institute's Neil Scott explains how the PMI supports employers offering apprenticeships.
We were delighted to have contributed to the development of the new Workplace Pensions Trailblazer Apprenticeship Standard – an entry-level apprenticeship standard for workplace pensions consultants or administrators, now available for employers to offer to assist in the development of staff working in these areas.
The PMI will have a wide variety of qualifications included in the new apprenticeship
Looking to strengthen the role of apprenticeships, the government introduced an apprenticeship levy from April 6 this year. This levy must be paid by all employers operating in the UK with a pay bill of more than £3m each year, and is charged at a rate of 0.5 per cent of their annual pay bill. It is paid to HM Revenue & Customs through the Pay As You Earn process.
How the apprenticeship levy works
So for example, an employer paying the levy with an annual pay bill of £5m would have to pay an annual levy of £10,000 after deducting a levy allowance of £15,000.
Once an employer has paid the levy to HMRC it will be able to access funding for apprenticeships through a new digital apprenticeship service account. So an employer will be able to use this to pay for training and assessment for apprentices in England.
It should be noted, though, that funds will expire 18 months after they enter a digital account, unless they have been spent on apprenticeship training.
An employer can therefore use these levy funds to support training that is delivered, and professional examinations/qualifications undertaken, as part of the Workplace Pensions Trailblazer apprenticeship.
Of course, the levy applies to all UK employers, and equally levy funding can be used across a full range of apprenticeships. Smaller, non-levy paying employers can also access government funding for apprenticeships, up to about 90 per cent of costs.
PMI will be assessment endpoint for new apprenticeship
The PMI will have a wide variety of qualifications included in the new apprenticeship and will also be the end-point assessment organisation for this apprenticeship. This will ensure all apprentices have met the required standards, and in effect sign off each apprenticeship.
The intention is that new entrants will have greater access to training and relevant qualifications and a clear route into the profession.
Neil Scott is head of professional standards, Pensions Management Institute
