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.
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.
£1000 grant is available for companies that hire a new person into the business onto an apprenticeship.
Often referred to as SME’s, Non-Levy payers will have a payroll of £3m or bellow.
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.
Large Levy-paying firms can gift up to 25% 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.