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Apprenticeship Funding Review

Funding

Funding for Apprenticeships comes from 1 of 3 sources, a company's own Levy fund, the government via a Non-Levy fund or a Gift Levy from larger levy companies that gift part of their own funds. See below for more details.

Levy

An apprenticeship Levy is a fee that employers must pay at a rate of 0.5% of their annual payroll each month if they have a yearly pay bill of more than £3 million or are linked to any companies or charities for Employment Allowance purposes and have a combined annual pay bill of more than £3 million.

 

Non-Levy

Often referred to as SME’s, Non-Levy payers will have a payroll of £3m or below.

 

The government will fund 95% of the course cost, Employers are only responsible for 5% of the overall cost of training and assessing an apprentice.

 

£1000 grant available for companies that hire a new person into the business onto an apprenticeship that is 16-18 years old or 19-24 on an EHCP or has been in the care of their local authority.

Gift Levy

Large Levy-paying firms can gift up to 50% of their unused annual levy to other organizations to cover the cost of apprenticeship training and assessments.

 

Levy gifting is a great way to support other companies onboard new apprentices or apprentices whose employer has changed.

Non-Levy Employers with less than 50 staff and the apprentice is 16-18 years of age there is no contribution to pay at all, and may be eligible for £1000 towards the costs of employing an apprentice.

For more advice on how to fund your apprentice(s) call us on 0345 880 1818 or register here for more information.

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