Apprenticeship Funding Explained
How apprenticeships are funded – Updated from 1st April 2024
Apprenticeships are funded through co-investment, with both employers and the government jointly contributing to cover the delivery of the apprenticeship and assessment for individuals aged 22 and over. Employers who do not pay the apprenticeship levy and wish to enrol an apprentice aged 22 or over, will make a 5% contribution. From 1st April, for employers that do not pay the levy, the government will fund 100% of the apprenticeship cost for individuals aged 16-21.
Funding summary for employers who do not pay the levy tax:
- All apprentices aged 16-21 at the start of the apprenticeship = Fully funded / No contribution required
- All apprentices aged 22 or over at the start of the apprenticeship = 95% funded / 5% contribution required
- Apprentices aged 22 to 24 with an Education, Health and Care plan (EHC) = Fully funded / No contribution required (if you employ fewer than 50 employees)
Please note that funding is not to cover the cost of the apprentice wage. Apprentices must be paid at least the National Minimum Wage and from 1st April 2024 the new rates are:
Apprentice & 16-17 year old = £6.40 per hour
18-20 year old = £8.60 per hour
21 and over = £11.44 per hour
- If the apprentice is 16-18, they must at least be paid the national minimum wage for the duration of the apprenticeship, though you may pay a higher wage if you wish.
- If the apprentice is 19+, they may be paid the apprentice National Minimum Wage, but only in the first year of the apprenticeship. After this, they must at least be paid the National Minimum Wage for their age.
What can I use the funding for?
The funding can be used to train both newly recruited apprentices and existing staff, and there are a variety of apprenticeships relevant to each job role. There are no age restrictions, so you can use the funds to train an apprentice of any age.
What are the current costs?
The exact costs vary between qualifications, but as an example, the typical cost for a Team Leader/Supervisor Level 3 qualification would be approximately £9 per month over a 17 month period, with a final payment of £72 on the 18th month. Please be aware that the while the overall cost remains the same, the exact payment plan may change depending on the employee’s contracted hours, and whether they work full or part-time.
What about incentives?
Your business may be eligible to receive an incentive of £1000 if you recruit / enrol an apprentice aged 16-18.
Off-the-Job Training and the End-Point Assessment
Employers must schedule time for the apprentices to study each week, known as off-the-job training. In short, for 20% of the apprentices’ contracted hours, they must have time away from their regular duties to engage in training related to their post. This could include, for example, practical training, as well as theory and writing assignments.
The End-Point Assessment (EPA) is another requirement for apprenticeship standards, and serves to test the apprentice on the skills, knowledge and behaviours gained through the apprenticeship. The exact details of the EPA varies between qualifications, but common assessment types include:
- Knowledge Assessments
- Portfolio-Based Interviews
- Practical Observations
Why choose us
Apprentice Team Ltd works in partnership with an extensive network of high quality skills providers, and as a result, we are able to establish the most cost-effective solutions across a wide offering of subject areas. We have over 9 years’ experience within the industry, and offer a quality service to suit all business needs.
In practical terms, we provide impartial guidance and support to navigate the system, as well as a comprehensive organisation needs analysis and a complementary recruitment service. During the apprenticeship, our professional tutors conduct learning visits every 4-6 weeks, ensuring our apprentices have the support they need to thrive and progress in the working environment.
For further advice and guidance, please call one of our advisors today on 01246 278931, email info@apprenticeteam.co.uk, or fill in the contact form below:
