Get clarity on apprenticeship funding
Apprenticeship funding has changed and is now dependant upon the size and payee bill of the employer:
Employers of 49 or less employees with a salary bill less that £3 million:
If you are an employer employing 49 or less employees with a salary bill of less than £3 million the apprenticeship training will be fully funded if the apprentice is aged between 16-18 or is 19-24 and is a care leaver or had an Education and Health Care Plan (EHCP).
If the apprentice is aged 19 and over and is not a care leaver and doesn’t have an EHCP, the government will fund 95% of your apprenticeship training costs.
There is a cash incentive available to you the employer if your apprentice is aged between 16-18 or 19-24 and is a care leaver or has an EHCP you will receive an additional £1000 Government incentive payment.
Employers of 50 or more employees with a salary bill less than £3 million:
If you are an employer with 50 or more employees and a salary bill of less than £3 million then 95% of your training costs will be funded by the government and the remaining 5% will be paid via your company in equal instalments across the agreed training period.
There is a cash incentive available to you the employer if your apprentice is aged between 16-18 or 19-24 and is a care leaver or has an EHCP this will be a payment of £1000 paid by the government.
Employers with a salary bill more than £3 million:
If you have a salary bill of over £3 million then you will pay the apprenticeship levy. The apprenticeship levy is a mandatory government tax that will be payable by all UK employers with a pay bill over £3 million. You will contribute 0.5% of your annual salary bill into the Levy. The levy is collected through monthly HMRC deductions and the amount you pay will be credited to the apprenticeship. The monies you build up in this account is yours but must be spent on apprenticeships. It cannot be used to pay wages or other staff expenses. You have 24 months to spend your levy funds.
From January 2020 all employers will have access to the benefits of the Education and Skills Funding Agency’s (ESFA) Digital Apprenticeship Service (DAS). This was previously only available to levy payers, you can now create an account on the apprenticeship service website.
The apprenticeship service will guide you through how to reserve apprenticeship funding giving you greater control over the amount of funding paid to your training provider on your behalf. You will be able to select the apprenticeship standard and the relevant end point assessment matching your requirements.
For more guidance on the Digital Apprenticeship Service and how to use it please go to www.apprenticeships.gov.uk.
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