Apprenticeship funding and the Levy

‌‌Apprenticeship funding is determined by the annual payroll of your company, the number of people you employ and the age of your apprentice.

As an employer, you will be required to make an investment in Apprenticeships, from which you can benefit by training existing employees or recruiting new staff and bringing those all-important higher level professional and technical skills into your business.

Find out how the new levy will affect you, including some of the great benefits. You can also find out more information on the levy and how it will work on the government website.

For employers with a payroll below £3 million:

The Government will pay 90% of the cost of the Apprenticeship training and assessment for apprentices of any age.

For employers with a payroll above £3 million:

From May 2017, employers will be able to use their Apprenticeship Levy contributions towards the cost of the Apprenticeship using their digital account. We will agree the cost to your business up front. 

Incentive Payments

All businesses will receive an extra support payment of £1000 if at the start of the Apprenticeship, the apprentices is

  • Aged 16-18 years old or
  • Aged between 19-24 years old and has either an EHC between or has been in the care of their local authority (as defined in the ESFA funding guidance) 

Additional support arrangements for small businesses 

Small businesses (less than 50 employees) hiring an apprentice under the age of 19 years when the Apprenticeship starts will pay no tuition fee at all.

Apprentice wage

Apprentices are full time employees and will be entitled to a wage and paid time off to study. Employers do not have to pay Class 1 National Insurance for the apprentices under the age of 25. Those aged 16-19 in the first year of their Apprenticeship must receive at least the minimum Apprenticeship wage, some employers pay significantly more than this rate, and there are examples of both Higher and Degree Apprenticeships offering salaries between £16,000 and £24,000 per year.

Need advice? Get in touch

We can help you to plan your Apprenticeship programme and develop your workforce through our range of Higher and Degree Apprenticeships

Whether you are a Levy paying employer or not, get in touch with us at the Apprenticeship Hub for further guidance.