Apprenticeships – Fees
The Government has recently made changes to funding for apprenticeships, depending on whether or not your business is a levy payer.
If you have to pay the apprenticeship levy
Some employers will be contributing to an apprenticeship levy.
If you are a levy-paying employer you will need to register for the apprenticeship service so you can manage your apprenticeship funds. You will be able to pay for training and assessment from your account.
The government will apply a 10% top-up to the funds you have to spend in your account.
If you don’t have enough funds in your account to pay for the apprenticeship training you require, you will need to co-invest 10% of any outstanding balance; the government will pay the remaining 90% up to the funding band maximum allocated to a particular apprenticeship. If you exceed the funding band maximum, you will need to pay all the additional costs.
If you don’t pay the apprenticeship levy
If you don’t pay the levy, you won’t need to use the apprenticeship service to pay for apprenticeship training and assessment until a later date.
You will need to make contribution of 10% to the cost of apprenticeship training and the government will pay the remaining 90% up to the maximum amount of funding allowed for the apprenticeship you have chosen. You will have to meet, in full, any cost (including for end-point assessment) which is above the funding band maximum. You will pay your contribution to the college over the lifetime of the apprenticeship.
Additional funding and support
You could also be eligible for additional funding and support, depending on your apprentice’s circumstances or if you are a small employer employing fewer than 50 employees.
Regardless of whether or not you are a levy paying business, there is also an additional payment of £1000 for all employers who take on a 16-18 year old apprentice.
If you are a business with less than 50 employees taking on a 16-18 year old apprentice, the government will fund the full 100% cost of training and assessment.
For more information, please visit the government website here.