Apprenticeship Funding Explained
What is the Apprenticeship Levy?
The Apprenticeship Levy applies to UK employers paying £3million PAYE per annum. Employers with an annual wage bill of less than £3m will not pay the levy. Instead, Apprenticeships will be jointly funded by employers and the Government.
Non-Levy paying employers now share the cost of training and assessing their apprentices with the government through ‘co-investment’. Non-Levy paying employers now contribute 10% towards the cost of Apprenticeship training and the government fund the remaining 90%, up to the funding band maximum for the qualification. For example the typical cost for a Management Level 3 qualification would be approximately £8 per month over a 17 month period with a final payment of £64 on the 18th month. A small investment for a much greater return.
Employers with fewer than 50 staff members, who recruit an Apprentice aged between 16-18, will receive full funding for the Apprenticeship and a contribution will not be required. There is also an incentive which your business may also be able to access for recruiting an eligible Apprentice. Currently this is £1,000 and payment is triggered at the 3rd and 12th month of the programme.
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. As a successful training provider, we understand your need to work with a partner who has a passion for Apprenticeships, establishes a strong cultural fit and tailors the training to meet your organisation’s needs.
Apprentice Team Ltd are working 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 for our individuals. We have over 8 years’ experience within the industry and offer a quality service to suit all business needs. We provide impartial guidance and support to navigate the system and complete a comprehensive Organisation Needs Analysis.
Please find below the link to the calculator which allows you to establish the contribution costs of any work based learning or Apprenticeships that are not fully funded for your business:
For further advice and guidance, please call one of our advisors today on 01246 278931.