Funding for Apprenticeships
Taking on an apprentice is a cost-effective way of expanding or developing your workforce. The government fully supports employers who decide to take on an apprentice, with the offer of a £1,000 incentive subject to certain criteria.
If you are a non-levy employer, you only play 5% of the total cost of training, with the government funding the remaining 95% so, for example, an Apprenticeship that costs £2,000 – as a non-levy employer you would pay £100 and the Government would pay £1,900. If the apprentice is 16 to 18, you won’t have to pay a thing and you will still receive a £1,000 incentive. from the Government.
Levy-paying employers automatically pay 0.5% of their wage bill into a ring-fenced fund which can then be claimed to put towards the cost of training apprentices. You will need an online account to manage your funds via www.gov.uk/guidance/manage-apprenticeshipfunds. Levy-paying employers who don’t have enough in their accounts to cover the full cost of training will pay any additional training costs as if they were a non-levy employer, with the Government contributing 95% of the cost.
Funding is for the cost of training and cannot be used to pay apprentices’ wages.
See our key facts about Apprenticeship funding by clicking here.