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From April 17 the Government has introduced some changes to the way they fund apprenticeships, putting employers in the driving seat with more control over designing, choosing and paying for apprenticeship training.

Employers who pay the Apprenticeship Levy

If you’re an employer with a pay bill over £3 million each year, you must pay the apprenticeship levy from 6 April 2017. Employers who pay the levy will be able to access a new digital apprenticeship service that allows them to spend available funds on apprenticeship training by creating a digital account.

If in any single month as a levy-paying employer you have insufficient funds available in your digital account to meet the full costs of training and assessment, you will need to co-invest 10% of the remaining balance, with government paying the remainder.

Employers who don’t pay the Levy

Non-levy paying employers will share the cost of training and assessing their apprentices with government – this is called ‘co-investment’. From May 2017, you will pay 10% towards to the cost of apprenticeship training and government will pay the rest (90%), this will be £900 for a level 3 and £2700 for a level 6 apprenticeship.

Employer Incentive Payment for 16-18 Year olds

The government will also pay employers, no matter what size, £1,000 for each 16-18 year old apprentice they employ.

Co-investment waiver for SMEs (less than 50 employees) for 16-18 year olds

The government is offering additional support to organisations with fewer than 50 employees by paying 100% of training and assessment costs for their apprentices aged 16-18 and for those aged 19-24 formerly in care or with a local authority education, health and care plan