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Apprenticeship Funding

The way apprenticeships are funded has changed. Funding is dependent upon the size and payee bill of the employer.

49 or less employees and a salary bill of less than £3 million

Apprenticeship training will be fully funded if the apprentice is aged between 16-18 or 19–24 and is a care leaver or has an Education and Health Care plan.

If the apprentice is aged 19 and over and is not a care leaver and doesn’t have an Education and Health Care plan, the Government will fund 95% of your apprenticeship training costs.

Cash incentive available

If your apprentice is aged between 16-18 or 19 – 24 and is a care leaver or has an Education and Health Care plan, you will receive an additional £1000 Government payment.

50 or more employees and a salary bill of less than £3 million

95% of your training will be funded by the Government. The remaining 5% is paid by your company in equal instalments across the agreed training period.

Cash incentive available

If your apprentice is aged between 16-18 or 19 – 24 and is a care leaver or has an Education and Health Care plan, you will receive an additional £1000 Government payment.

A salary bill of more than £3 million (Apprenticeship Levy)

You will pay the Apprenticeship Levy.

The Apprenticeships Levy is a mandatory government tax that will be payable by all UK employers with a pay bill over £3million. 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 on wages or other staff expenses. You have 24 months to spend levy funds.

APPRENTICESHIP SERVICE

From January 2020 all employers will have access to the benefits of the Education and Skills Funding Agency's (ESFA) Digital Apprenticeship Service (DAS). Previously available only to levy employers, you can now create an account on the apprenticeship service to:

  • Reserve apprenticeship funding
  • Select a suitable apprenticeship standard and end point assessment organisation
  • Select a suitable provider from the Register of Apprenticeship Training Providers (RoATP) to deliver your training
  • Advertise an apprenticeship vacancy
  • Give real-time feedback on the quality of training provision you receive
  • Have greater control over the amount of funding paid to your training provider on your behalf

For more guidance on the Digital Apprenticeship Service and how to use it please click here.

For details on the cost of apprenticeships for each sector, please get in touch.