Apprenticeship reforms, how to check if you have an outstanding Child Trust Fund, and warmer rental properties
In today’s blog post we discuss the government’s plans to reform the apprenticeship system, how to check if you have an outstanding Child Trust Fund, and plans to increase the heat within rental properties.
New apprenticeship reforms: What they mean for your business
The government has announced some reforms to the apprenticeship system in England, which could bring some exciting opportunities for business owners. These reforms, aimed at boosting young people’s access to apprenticeships, come with a new “growth and skills levy” that will replace the existing apprenticeship levy.
Here’s what you need to know, and how this could benefit your business.
Understanding the new growth and skills levy
This new levy is designed to give businesses more flexibility when it comes to taking on and training new apprentices. Under the current system, apprenticeships have to last at least 12 months, which may not always suit your business needs.
Under the new system, funding for shorter apprenticeships will be possible. This flexibility means you’ll be able to offer training programmes that suit both the needs of your business and the learning speed of your staff. This may mean being able to get new staff members up and running quicker, while still providing them with valuable skills training.
New foundation apprenticeships
Another key part of the reforms is the introduction of “foundation apprenticeships.” These new apprenticeships are aimed at giving young people a better start in certain critical sectors so that they can earn a wage while developing skills at the same time.
The goal of the reforms is clearly to encourage employers to invest more in younger workers. Young people can be highly motivated and eager to learn, and with government support for their training, this could be a good resource for your business.
What does this mean for your existing apprenticeship plans?
To raise the funds required under the new system, employers will be asked to rebalance their apprenticeship funding and invest in younger workers. Businesses will need to fund more of their level 7 apprenticeships (those at the master’s degree level) outside of the levy. These high-level apprenticeships are typically accessed by older or already well-qualified employees.
If you rely on level 7 apprenticeships in your business, it’s worth looking ahead and planning how you might adjust your budget to cover more of these costs yourself.
What does Skills England’s report mean for you?
Skills England has also published its first report, which highlights the skills gaps currently facing the UK economy. According to the report, employer investment in training has declined over the past decade. Investment per employee is down by 19% in real terms since 2011.
The report also shows that 1 in 10 jobs are now in “critical demand” with more than 90% of these jobs requiring training or education.
This report could act as a wake-up call for many businesses. With fewer people investing in training, those who do could gain a clear advantage in filling critical roles. By taking advantage of these new apprenticeship reforms, you could be ahead of the curve, helping your business secure the skilled workers it needs for long-term success.
In summary: key takeaways for your business
- The new growth and skills levy offers more flexibility, allowing you to take on apprentices for shorter periods, tailored to your business’s needs.
- Foundation apprenticeships could help businesses access a pipeline of young talent.
- The funding for high-level apprenticeships (level 7) will shift more towards employers, so plan ahead if this is relevant to your business.
- The Skills England report highlights massive skills gaps across many industries – by investing in apprenticeships now, your business could secure a competitive edge.
With these changes on the horizon, it’s worth keeping an eye on further announcements from the Department for Education for specific details on how the new system will work. But in the meantime, if you’re looking to grow your team or upskill your workforce, these apprenticeship reforms could be the perfect opportunity to get started.
See: https://www.gov.uk/government/news/prime-minister-overhauls-apprenticeships-to-support-opportunity
Have a Child Trust Fund? Time to check if you can claim your savings!
If you, or your child, was born between 1 September 2002 and 2 January 2011, there could be a savings account with your or their name on it – literally!
More than 670,000 young people, aged 18-22, have yet to claim their Child Trust Fund, with HM Revenue & Customs calculating that the average fund is worth £2,212. That’s a decent chunk of money, so it’s worth checking to see if you’re one of those with unclaimed funds.
Let’s look at how you can find out if you or someone in your family are owed this cash, and what steps you need to take.
What is a Child Trust Fund?
Child Trust Funds are tax-free savings accounts that were set up for every child born between 1 September 2002 and 2 January 2011. The government kickstarted each account with a £250 deposit, and in some cases, parents may have topped this up over the years. Once the child turned 18, the account matured, meaning that the funds can be withdrawn or reinvested.
The key thing to note is that these accounts aren’t held by the government but are managed by banks, building societies, or other savings providers. So, while the money is there, it’s not automatically sent to the account holder—you’ll need to take action to claim it.
How do you find your Child Trust Fund?
If you already know which provider holds the Child Trust Fund, then you can simply contact them directly and start the process to withdraw or reinvest your savings.
But what if you don’t know where your fund is? No problem. There’s a handy online tool on GOV.UK that can help you find your Child Trust Fund provider. All you need is your National Insurance number and your date of birth. If you’re unsure of your National Insurance number, you can easily find it using the HMRC app.
If you’re not sure whether you or your child have a Child Trust Fund or how much it’s worth, the best thing to do is do a quick check. You won’t lose anything by checking and you may get a nice surprise of discovering some extra savings for you or your family member.
If you need any help at all navigating the process, please feel free to get in touch – we’re always happy to help!
See: https://www.gov.uk/government/news/671000-young-people-urged-to-cash-in-their-government-savings-pot
Increase in warmth standards for rented homes
The government has announced new measures designed to improve the warmth of homes for renters and lower heating costs.
As things currently stand, a private rented home can be rented out if it meets Energy Performance Certificate (EPC) E. Social rented homes have no minimum standard at all.
A consultation will shortly be launched on proposals for both private and social rented homes to have to meet EPC C or its equivalent by 2030.
Also announced was a new Warm Homes: Local Grant that will help low-income homeowners and private tenants to be able to make necessary energy performance upgrades to their home.
No dates have been announced as to when these measures will take effect, but if you are a landlord of a private rented home it may be worth you monitoring the consultation when it’s launched so that you can have your say. It may also be prudent to consider what investment you may need to make if you need to make improvements to your property.