A new way of funding apprenticeship came into force on 1 May 2017.
Funding for Apprenticeships is now available to employers either through payment of the new Apprenticeship Levy or from a co-financing system from the Education and Skills Funding Agency.
How much funding is available depends on numerous factors, including the particular Apprenticeship programme and the age of the apprentice.
Full details of Apprenticeship funding can be found on the Governments website.
If you’re an employer with a pay bill over £3 million each year, you must pay the apprenticeship levy. The levy is a 0.5% tax on an annual payroll bill for every company but only for the amount of that payroll which is over £3m. Your learning porovider will be paid directly out of your levy account. Your levy account will be managed through the new apprenticeships service.
You and your learning provider could receive additional incentives e.g. £1,000 for employing a 16-18 year old apprentice.
Skills for Care have produced a helpful ‘employers journey’ for levy payers (see left).
Further detailed information about the Apprenticeship Levy can be found on the Skills for Care website.
If you’re a small/medium enterprise (SME) care provider with an annual payroll of under £3 million you’re classed as a non-levy paying employer.
Non-levy paying employers will share the cost of training and assessing their apprentices with government - this is called ‘co-investment’.
You will pay 10% towards to the cost of apprenticeship training and government will pay the rest (90%). You and your learning provider could receive additional incentives for example the £1,000 incentive for employing a 16-18 year old apprentice
Skills for Care have produced a helpful ‘employers journey’ for non-levy payers (see left).
The changes will not affect the way you fund training for apprentices who started an apprenticeship programme before 1 May 2017. You’ll need to carry on funding training for these apprentices under the terms and conditions that were in place at the time the apprenticeship started.