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 up-skill your existing workforce or can go towards investing in a new Apprentice. Find out more about the Apprenticeship Levy.
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. What level will depend upon how many members of staff you have. For businesses with less than 50 employees, Apprentices aged 16-18 and 19+ on a health and care plan are fully funded by the government. For those with more than 50 staff the government will pay 95% of an Apprentices training costs, your business will have to contribute the remaining 5%.
Financial Benefits for both Levy & Non Levy Payers:
- Access to £1000 of government funding when you employ a 16-18 year olds.
- Pay no National Insurance on Apprentices aged 16-24.
Contact us today to find out more about the benefits Apprenticeships could bring to your business.