On April 2017 the Government is introduced a levy for Apprenticeships. Alongside PAYE contributions, employers with wage bills of more than £3m will have to pay 0.5% of their wage bill into an electronic account, regardless of whether or not they employ apprentices. The Government will use this to fund the cost of Apprenticeship training and assessment.
Non-levy paying employers will share the cost of training and assessing their apprentices with government - this is called ‘co-investment’.
From May 2017, you will pay 10% towards to the cost of apprenticeship training and government will pay the rest (90%), up to the funding band maximum.
• Smaller employers will have to make a cash contribution towards the cost of training and assessing an apprentice. The Government will pay 90% of the cost with the employer paying 10%
• However, if the employer has less than 50 staff and they recruit a 16-18 year old apprentice, 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 that employer contributions 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
• The training provider an employer works with will also receive an incentive payment of £1000 from the Government for delivering Apprenticeship training for a 16-18 year old.
• An additional £1000 support payment will be available to an employer and their training provider 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.