While the employer pays for an apprentice’s wage, funding for training and assessment providers varies depending on whether you are a levy-paying firm or not.
If you qualify as a levy-paying employer, your levy taxation rate will be 0.5% of your yearly pay bill. These monies will be accumulated in your digital Apprenticeship Service account. After that, you may log in and spend these cash to cover the costs of hiring a training provider. After then, the government will give you an additional 10% of your total accumulated funds.
If you are a non-levy paying company (and your wage bill does not exceed £3 million), you will be obliged to pay 5% of the expenses of training and End-point Assessment, with the government covering the rest.
If your total employee headcount is less than 50, the government will fund 100% of the provider expenses for apprentices aged 16 to 18, or 19 to 24, who have been in the care of their local authority.
It’s important mentioning that the government has identified 30 apprenticeship funding bands. These are the maximum contributions that the government is willing to provide for a standard that falls within a specific band. Non-levy paying companies should be informed that if the cost of a programme exceeds the top limit of that band, they will be asked to reimburse the difference.
Employers who hire a new apprentice might get incentive incentives. To find out more about the financial incentives available view our section about the Levy on our website here.