From 1st May 2017, the Apprenticeship Levy has been in place. This is payable by employers with wage bills of more than £3m. These employers must pay 0.5% of their wage bill into an electronic account, regardless of whether or not they employ apprentices. These funds must then be used by the employer to fund the cost of Apprenticeship training and assessment.
Employers with a wage bill of less than £3m are required to make a 10% contribution towards the cost of training and assessing an apprentice. The Government pay the balance of costs.
- However, if the employer has less than 50 staff and they recruit a 16-18 year old, the Government will pay 100% of the cost of the training and assessment
- The Government are simplifying Apprenticeship funding by placing every existing Apprenticeship into one of 15 funding bands, ranging from £1500 to £27000
- This means the 10% employer contribution could be as little as £150 or up to a maximum of £2700, depending on the type and level of the Apprenticeship training
- All employers, regardless of size, will receive a support payment of £1000 for employing a 16-18 year old apprentice, even where the Government has funded 100% of training and assessment costs
- An additional £1000 support payment will be available to an employer if they employ a 19-24 year old apprentice who was formerly in the care of the local authority or who has an Education Health Plan
Contact us for more details about how Apprenticeships are funded