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Employing an apprentice may be more affordable than you think.

Government apprentice funding is available to help all businesses who employ apprentices.

The recruitment of all new apprentices will be required to go through the Apprenticeship Service System whether you are a Levy Payer or a Non-Levy Payer. Through your Apprenticeship Service account you will be able to manage a range of services such as managing apprenticeship funding, advertising vacancies and reserving funding for all apprentices. 

Our Business Support Team can support you in setting up your account, but you will need to do the initial registration and input your PAYE information. When you are setting up your account, you can give us permission to add details but you would still need to approve anything that we amend on your account.

apprentice funding

What apprentice funding is available?

Small employers
(less than 50 employees)

You are required to pay 5% towards the cost of training and assessing apprentices aged 22 or over.

Medium employers
(more than 50 employees)

You are required to pay 5% towards the cost of training and assessing all apprentices.

Levy payers
(wage bill of over £3 million)

You will pay 0.5% of your annual wage bill into your Apprenticeship Levy account, this can only be spent on apprenticeship training.

Additional Costs

It is a requirement that employers will need to pay for any online exam re-sits during the apprenticeship. The cost is around £15 per re-sit. Employers will also be responsible for paying for any End-Point Assessment re-sits. This can vary from £100 – £500 depending on what the apprentice will need to re-sit. The initial cost for one End-Point Assessment is included in the overall apprenticeship delivery cost and will include one free re-sit. 

£1k Government incentive

Regardless of company size and turnover, you will receive a £1,000 incentive for recruiting a 16-18 year old or a 19-25 year old with an Education, Health and Care (EHC) plan, or has been in the care of their local authority. 

You can spend the incentive on any costs associated with training an apprentice in the workplace. For example, on uniform, your apprentices travel or their salary. The incentive payments are paid in two instalments; the first payment of £500 will be made after 90days of the apprenticeship training start date, and the final payment of £500 will be paid after 365 days of the apprenticeship start date.

What is the Apprenticeship Levy?

The Apprenticeship Levy is a type of tax paid by qualifying employers to help the Government fund Apprenticeships. Employers that meet the Apprenticeship threshold and have a payroll of more than £3 million are required to pay a 0.5% levy on their total payroll. These contributions can then be used by the employer to fund apprenticeship training for new or existing employees.

Employers can access their levy funds through a digital account and have up to 24 months to spend the money. Any funds not used within this time will expire. HMRC takes these expired contributions and uses them to support existing apprentices complete their training and pay for Apprenticeships for smaller employers. There is also an option for levy-paying employers to transfer up to 25% of their levy funds to other employers.

Got questions about Apprenticeship funding?
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