From May 1st, 2017, the way Apprenticeship training is funded is changing. The new system puts employers in the driving seat and allow more control designing, choosing and paying for apprenticeships.
This will only apply to employers with a pay bill in excess of 3million and will be charged at a rate of 0.05% of the employers pay bill. Each employer will have a levy allowance of £15,000 to spend on apprentice training. This is not a cash payment and cannot be used for any other training. To use this allowance please contact our Business Development Advisors for more detail.
Non-Levy paying Employers
The impact of the allowance is estimated to only effect 1.3% of UK employers and the government will continue to invest 90% of the funding band for apprenticeship training. Therefore 10% will be co-invested by the employer. This cost will be paid directly to your chosen training provider over the lifetime of the apprenticeship.
Small Employer Co-investment waiver
To support smaller business with fewer than 50 employers, the government will invest the full 100% of the cost of apprenticeship training to support 16-18 year olds and for those ages 19-24 formally in care or with a local authority education, health and care plan.
There will be extra payments for taking on 16-18-year-olds with a £1000 paid to both the employer and the provider. This will be paid in two equal instalments throughout the apprenticeship at 3 months and 12 months and will also apply to small businesses with the co-investment waivered.