Apprenticeship Levy

Levy Employer

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.

Incentive payments

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.

Purple Beard offers a range of Digital Skills Apprenticeships. If you are interested in finding out more please contact us.