Apprenticeship Funding Explained

How apprenticeships are funded

Apprenticeships are funded through co-investment, with both employers and the government jointly contributing to cover the delivery of the apprenticeship and assessment. Employers who do not pay the apprenticeship levy tax will make a 5% contribution. This does not cover the wages of apprentices, the guidelines for which are as follows:

  • If the apprentice is 16-18, they must at least be paid the national minimum wage for apprentices (£4.15 per hour) 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 National Minimum Wage for apprentices, 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?

As of the 1st of August 2020, amazing new incentives will be on offer when recruiting an apprentice (eligibility criteria applies). These are as follows:

  • If recruiting an apprentice who is aged 16-18, you will receive a £3000 incentive. In addition, if you employ less than 50 staff members, the qualification will be fully funded by the government.
  • If recruiting an apprentice who is aged 19-24, you will receive a £2000 incentive.
  • If recruiting an apprentice who is aged 25+, you will receive a £1500 incentive.

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:

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