With the introduction of the Apprenticeship Levy in April of this year the way Apprenticeships are funded has changed, Companies now fall into one of two categories; Levy Payer or Non-Levy Payer.
Is your organisation's wage bill over £3 million per annum?
If your organisation's wage bill is over £3 million pound per year you are a Levy Payer and are required to invest 0.5% of this into Apprenticeships, paying into a Levy pot on a monthly basis. This Levy pot can be used to upskill your existing workforce or can go towards investing in a new Apprentice.
Is your organisation's wage bill less than £3 million per annum?
If your organisation's wage bill is less than £3 million you will not pay into the Levy. You will qualify for funding from the government who will pay 90% of an Apprentices training costs, your business will have to contribute the remaining 10%.
Financial Benefits for both Levy & Non Levy Payers:
- Access to £1000 of government funding when you employ a 16-18 year old or 19 with a health & care plan
- Pay no National Insurance on Apprentices aged 16-24
- Benefit from cost effective training