Apprenticeship Funding

Your annual payroll bill will determine how much you, as an employer, are required to contribute towards Apprenticeship training costs or if you can receive funding.

Payroll over £3 million? 
Levy 

If you have a payroll bill of over £3 million, you will have to fund the Apprenticeship training costs by contributing to the Apprenticeship Levy. You can manage your funds and connect with Blue Sky directly through the .Gov Digital Apprenticeship Service!

Click here for more information about the Apprenticeship Levy.

 

To set up your Digital Apprenticeship Service account, click here.

After setting up an account, the amount of Levy funding entering your account can be calculated. This is calculated by the Levy you declare to HMRC through PAYE, multiplied by the proportion of your pay bill paid to your workforce who live in England, plus a 10% government top-up on this amount.

For more information, click here.

For guidance on how to use the Digital Apprenticeship Service, click here.

The system allows you to add any apprentices that have been signed up to complete an apprenticeship programme, and connect to the training provider, to manage the funding.

The total training cost depends on the apprenticeship funding band, and any prior experience the apprentice has in relation to the programme. The negotiated figure is divided by the number of months the apprentice is planned to be on programme. This amount is deducted from your Digital Apprenticeship Service account each month.

As a Levy-paying employer, you can transfer any unused Levy funds to other Levy and Non-Levy employers. You can transfer a maximum amount of 25% of your annual funds. You can make transfers from your Digital Apprenticeship Service account to as many employers as you choose.

Click here for more information.

 

Payroll under £3 million? 
Non-Levy 

If you have a payroll bill of under £3 million, you will have to contribute 5% of the Apprenticeship training costs, while the Government pays the remaining 95%.

 

Less than 50 employees, apprentice aged 16-18 and payroll under £3 million? 
Fully Funded

If you have less than 50 employees and, your Apprentice is aged 16-18, as well as having a payroll of under £3 million, the Government will pay 100% of the Apprenticeship training costs.

 

A Plan for Jobs 2020

The Government have recently published ‘A Plan for Jobs 2020’. This includes information about new apprenticeship incentives for employers. 

From 1st August 2020 – March 2021, employers will be eligible to receive an incentive payment for hiring a new apprentice for an apprenticeship start, if, at the start of the apprenticeship, the apprentice is a new employee.

Employers can receive: 

  • £2,000 incentive for recruiting an apprentice under 25 between August 2020 and 31st March 2021.
  • £1,500 incentive for recruiting an apprentice over 25 between August 2020 and 31st March 2021.

You can apply for this incentive until 31st May 2021.

The apprentice must not have been employed by the employer within the 6 months prior to the contract start date.

There is no limit on the number of incentive payments that you can claim for apprentices that are eligible to receive funding and meet the criteria. 

All employers must use the Apprenticeship Service to claim this payment.

To set up your Digital Apprenticeship Service account, click here.

Claims can be made from 1st September 2020. The payment will be made directly to you in 2 equal instalments, where the apprentice is still in learning at day 90 and day 365. 

From April 2021 – September 2021, the incentive is increasing to £3,000 for hiring a new apprentice of any age. You can start to apply for this incentive from 1st June 2021.