The Government has set funding bands to determine the maximum employers can spend on each apprenticeship training course through their digital account. Employers will pay in full any amount they agree with the training provider above this maximum level. The new funding bands will vary by apprenticeship occupation and level, but will not vary by age as they do at present.
Employers will be entitled to a £1,000 incentive payment for recruiting a 16-18 year old apprentice or 19-24 year old apprentice with an Education, Health and Care (EHC) plan.
Funds in employers digital account will expire after 24 months if not used.
Further more detailed information for employers can be found at: https://www.gov.uk/guidance/apprenticeship-funding-rules
For employers who do not pay the Apprenticeship Levy
If an employer has more than 50 employees but still doesn’t pay the levy, they will pay 10% of the training costs of each apprentice employers take on prior to 1 April 2019 and 5% for apprentices taken on after 1 April 2019.
If employers are a small employer (fewer than 50 employees) there will be no cost towards training an apprentice who is under 18 or aged 19-24 with an EHC plan, providing the cost of their training is within the maximum funding band.
Employers who do not pay the Apprenticeship Levy will be subject to the same apprenticeship funding bands as employers who do.
£1,000 is available to any employer taking on a 16-18 year old apprentice, or a 19-24 year old with an EHC plan – the same as for levy paying employers.
Employers with a wage bill of more than £3 million need to pay the Apprenticeship Levy.
The Apprenticeship Levy requires all employers to pay 0.5% of any wage bill over £3 million into the Government’s apprenticeship service, to pay for apprenticeship course fees.
Employers paying the Apprenticeship Levy will be able to access the funds they have paid for the cost of apprentice training through a new digital account. The Government top-up this amount by an additional 10%.
Should require assistance with funding or if you are looking at taking on an apprentice but don’t know where to start YH can offer a Free Training Needs Analysis and can assist you with applying for funding.
Get in touch with our team on 0800 542 2848 or email@example.com for more information.Posted in Apprentice recruitment, Apprenticeships, Funding February 20, 2020