The funding of apprenticeship standards and framework in England changed in 2017.
Large employers with a payroll bill of £3 million or more must now pay the apprenticeship levy. They can then access this money along with a 10% monthly top-up to fund apprenticeship training and development. Click to find out more about the apprenticeship levy.
For SME businesses with a payroll bill of less than £3 million, things are different. The Government pays 90% of total apprenticeship costs, with employers contributing 10%.
For those businesses with less than 50 employees, the Government will fund 100% of apprenticeship training for young people who are 16-18 years old.
We can talk to you in more detail about financial support and the changes to how apprenticeships are funded.
Q&AWhat are my responsibilities?
As an employer, you’ll need to:
- Employ an apprentice for a minimum of 30 hours a week.
- Pay at least the National Minimum Wage (NMW) for apprentices (for those under 19 or in their first year of an apprenticeship). The NMW rate that applies to the age of the apprentice applies thereafter.
- Induct the apprentice and support their on-the-job learning.
- Be involved in reviewing progress with the training provider.
Apprentices are entitled to the same benefits as everyone else in the workplace, such as sick pay entitlement, at least 20 days paid holiday a year, pension and statutory maternity/paternity leave.How does the apprenticeship levy affect my business?
Companies with a wage bill of more than £3 million are required to pay the apprenticeship levy, and some larger SMEs fall into this bracket.
So, what is the apprenticeship levy? It's a payment collected from large employers in the public and private sector and is paid to the HMRC via PAYE returns. Its purpose is to encourage employers to invest in apprenticeship programmes; recruiting new apprentices and boosting the skills of their existing workforce.
Looking to fund apprenticeship training? The apprenticeship levy paid by companies can be accessed by those same businesses to fund apprenticeship training within their company.
So, how much is the apprenticeship levy? The levy threshold is calculated by size of payroll. It’s 0.5% of a company’s payroll, with every employer receiving an allowance of £15,000 to offset against the amount they owe.
Businesses have been subject to the levy payment since April 2017 and it is payable each month.How can an apprenticeship benefit my business?
Did you know, more and more employers are discovering the benefits of employing apprentices?
You might be one of the many companies out there to discover that embracing apprenticeships could be one of the best things you do.
Apprentices can help tackle skill gaps, injecting new talent and fresh ideas into your business to support its future growth and success.
Many apprentices become highly qualified and can go on to rise through the ranks to management level. They can be a real asset to your company. Apprenticeships offer a great mix of on-the-job training and academic-based learning to ensure candidates have the skills and experience that are right for your business.
What’s more, an apprentice doesn’t have to be newly recruited because apprenticeships are also a fantastic way to develop and up-skill existing members of staff.How long does it take to complete an apprenticeship?
How long an apprenticeship takes to complete depends on the level of the apprenticeship, the ability of the apprentice and the industry sector. An intermediate Level 2 apprenticeship usually takes 12 to 18 months to complete, whereas an advanced Level 3 takes around 24 months.
Most intermediate apprenticeships (Level 2) take between 12-18 months to complete. Advanced apprenticeships (Level 3) usually take between 18-24 months and higher apprenticeships can take 2-4 years to complete.What are apprenticeships?
In short, apprenticeships are work-based training programmes that are used to develop new and existing employees – whether they’re in first-time positions or existing roles.
Apprenticeships are available to companies of all sizes and in all sectors. There are 1500 job roles covered by an apprenticeship so, whatever your business, there will be an agreed apprenticeship programme which lays out the knowledge and skills required.
Working with YH Training, you can develop an apprenticeship programme which meets the specific needs of your company.Read More Q&A
Apprenticeships we deliver....
- Business Administration
- Customer Service
- Healthcare Support Services
- Performing Manufacturing Operations
- Team Leading and Supervisor
- Warehousing and Storage
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