NVQ Levy
With effect from 30 September 2008, the regulations relating to the payment of a £10 levy for each National Vocational Qualification (NVQ) certification have been removed. This section of the website outlines what the changes are and how this will affect centres.
What is the NVQ levy?
The NVQ levy is a £10 charge applied to each NVQ certificate issued by awarding bodies. The levy supports the development and improvement of standards in relation to vocational qualifications.
What is changing?
Legislation relating to the levy has been revoked so that from 30 September 2008 awarding bodies will no longer be required to pay the levy.
Why is the levy being removed?
The government's response to Leitch, 'World Class Skills: implementing the Leitch review of Skills in England' contained a recommendation to replace the current statutory levy on NVQs with a grant to Sector Skills Councils. This grant will be funded by the UK Government and the Devolved Administrations in Wales, Northern Ireland and Scotland. It will enable Sector Skills Councils to have a reliable source of income for their work on qualifications and development of National Occupational Standards.
As a centre what can I expect?
Centres should reasonably expect to see the cost savings resulting from the removal of the levy being passed on by awarding bodies. However, these savings will vary between qualifications as some awarding bodies do not currently pass the full cost of the levy onto centres, whilst others spread the cost of the levy across all aspects of the qualification not just the certificate fee.
Awarding bodies will be communicating to centres their intentions regarding the fees for their NVQs; some awarding bodies have already started this. Centres are also encouraged to talk to their awarding bodies to establish how fees will be affected by the removal of the levy.
What is Ofqual doing about it?
Ofqual will be conducting a study to ensure that any cost savings due to the removal of the NVQ levy are passed on. This will include contacting some centres to see what the impact of the removal of the levy has been at centre level. A report will be published around spring 2009 and will be available from the Ofqual website or from info@ofqual.gov.uk.