Apprenticeships offer great value for employers when it comes to employee recruitment and training. They also present an exciting opportunity to expand or upskill your workforce.
Apprenticeship funding for employers means that, for many businesses, recruiting and training an apprentice is more cost-effective than hiring skilled staff on a higher salary.
We’ll take you through everything you need to know about the costs of apprenticeships and the different funding routes for employers.
Apprenticeship Funding for Levy Employers
The Apprenticeship Levy was introduced by the government in 2017 designed to fund apprenticeship schemes across the UK. It’s a great initiative that aims to lift employment rates, close the skills gap and give motivated learners the opportunity to build and develop skills whilst building their careers.
The levy is payable by all companies with an annual pay bill of more than £3 million.
It is a small tax charge paid at a rate of 0.5% of an employer’s annual payroll costs. The levy is reserved for apprenticeship training and businesses have two years to spend it. If you don't use it you lose it!
Find out more about the Apprenticeship Levy here.
Apprenticeship Funding for Non-Levy Employers
Businesses with an annual payroll of under £3 million do not pay into a ‘levy-pot’ and are therefore a non-levy payer.
For non-levy employers, the government funds 95% of the training costs for an apprentice with you paying the remaining 5%. If you are an employer with less than 49 staff and the apprentice is aged between 16-18 then the government will fund 100% of the costs!
To access this apprenticeship funding, you will need to create an apprenticeship service account. We will guide and support you through this process with step-by-step instructions.
Find out more about apprenticeship funding for non-levy employers here.
Whether levy or non-levy, employers can receive a £1000 incentive payment for taking on an apprentice who is:
- Aged 16 to 18 years old
- Aged 19 to 25 years old and has an education, health and care plan or has been in the care of their local authority.
At White Horse Training we deliver apprenticeships to levy and non-levy employers in both industry and practice. We will guide you through the funding process and minimise disruption for you by providing comprehensive support for you and your learner throughout every stage of the AAT Apprenticeship programme.
Call our team for further information about selecting White Horse as your Training Provider.