While the cost of an apprentice's salary is covered by the employer, funding for training and assessment providers is different depending on whether you are a levy-paying employer or not.
Funding for a levy-paying employer
If you qualify as a levy-paying employer, you will be paying 0.5% of your annual pay bill as your levy taxation rate. These funds will accrue in your Apprenticeship Service account. You can then log in and use these funds to pay for the costs of hiring a training provider. The government will then pay an additional 10% of your total accrued funds.
Funding for a non-levy paying employer
Previously, no co-investment was required from a non-levy employer if the apprentice was aged 16-18 and if the organisation had fewer than 50 employees. However, this has now changed. Funding is available for apprentices aged 16-21, regardless of the organisation's size, or aged 22-24 if they have an Education, Health and Care Plan (EHCP) provided by their local authority or have been in the care of the local authority and the employer has fewer than 50 employees.
How does it work?
Everything is organised through your online Apprenticeship Service account. It provides employers with a centralised platform to effectively manage the apprenticeship programmes running in their business and the training providers delivering them. You'll reserve your government funds through the apprenticeships service and once your employees are enrolled, the 95% is paid directly from the government and we'll organise an invoice for your 5% contribution. Read more about the Apprenticeship Service here:
Levy Transfers
Remember those businesses from earlier who pay into something called the apprenticeship levy? Well, if they don't need all of their monthly levy contributions, they can organise something called a levy transfer to another business for them to use on apprenticeship training.
The transfer process is from one specific employer to another specific employer for a specific apprenticeship programme for a specific number of apprentices but we can help you with all the complicated bits. Levy-paying businesses can transfer a maximum of 25% of their annual levy fund each year.
Incentives and Grants
As part of the government's commitment to apprenticeships, they often release incentives and grants for employers taking on apprentices in their business. Of course, it's important to ensure an apprentice is the right fit for your organisation rather than be drawn in by the incentive but they're a great additional support for responsible employers. Find out more about the apprenticeship grants available here.
Contact Us Today!
Don't settle for a one-size-fits-all approach. Contact us now to discover how our apprenticeship programme can be perfectly tailored to suit your business.