As an employer with a pay bill of more than £3 million, you’re required to pay the apprenticeship levy. You can manage funds using the apprenticeship service and spend it on training and assessing your apprentices. The government will apply a 10% top up to the funds you have in your account. If you don’t have enough funds, you just pay 5% of the outstanding balance and the government will pay the rest. This is up to the funding band maximum allocated to each specific apprenticeship. For apprentices that started before 1 April 2019, you need to contribute 10%. If you exceed the funding band maximum, you’ll need to pay all the additional costs.
Purple Beard offers a range of Digital skills Apprenticeships if you are interested in finding out more please contact us.
Non -Levy Employer
As an employer that doesn’t pay the apprenticeship levy, you pay just 5% towards the cost of training and assessing an apprentice.
The government will pay the rest up to the funding band maximum. You’ll pay the training provider directly and agree on a payment schedule. If you employ fewer than 50 employees, then the government will pay 100% of the costs of apprenticeship training. If you exceed the funding band maximum, you’ll need to pay all the additional costs.
If your apprentice started before 1 April 2019, you pay 10% towards the cost of training and assessing your apprentice and the government pays the rest. This rate continues until your apprentice completes their training.
When you hire new apprentices between 1 August 2020 and 31 January 2021, you can apply for extra funding to give your organisation a boost.
For apprentices aged:
- 16 to 24, you will receive £2,000
- 25 and over, you will receive £1,500
The payment is in addition to the existing £1,000 you will already get for taking on an apprentice who is:
- aged 16 to 18 years old
- under 25 and has an education, health and care plan or has been in the care of their local authority
You will also get the incentive payment when you hire a redundant apprentice.