Apprenticeship Funding
Apprenticeships are an affordable training option for many businesses.
The costs of apprenticeship training for employers can vary depending on the programme you choose and the size of your business. For learners, apprenticeship training costs nothing at all.
To make apprenticeships more accessible to SMEs, the government announced that it will fully fund apprenticeships in small businesses from 1 April by paying the full cost of training for anyone up to the age of 21 – reducing costs and burdens for businesses and delivering more opportunities for young people to kick start their careers.
Apprenticeship levy for large organisations
The Apprenticeship Levy is a small tax levied on UK employers with a salary bill of over £3 million to fund new apprenticeships. Levy-paying employers contribute 0.5% of their salary bill to the Apprenticeship Levy.
The levy can be spent on apprenticeship training for the entire workforce new and existing and on employees of all ages, from junior members of staff to directors and business owners. It can also include those who have university level qualifications.
The money will stay in your account for 24 months before it gets returned to the government and reallocated to other businesses if not spent within this period. Therefore, it is important to start the planning process early to make sure you take the full advantage of the available funding.
We can support you to maximise your levy strategy and make the most of the funding on offer.
Apprenticeship funding for small businesses
If your business has a salary bill of less than £3 million, you will not contribute to the Apprenticeship Levy. Instead, you will pay only 5% of your apprentice’s training and assessment fees, while the Government contribute 95%.
If your company has less than 50 employees and you take on a 16-18 year old, you are entitled to receive the training completely free of charge.
Digital Apprenticeship Service
All employers are required to set up an online Apprenticeship Service account to recruit and manage apprentices, as well as to access their Levy funds. The following information will help guide you through the process.
If you would like support in setting up and using your Apprenticeship Service account, please contact us on employer.training@gloscol.ac.uk or 0345 155 2020 and we would be happy to help.