Employers with an annual wage bill of less than £3million will not pay the levy. Instead, Apprenticeship Standards and Frameworks will be jointly funded by employers and the government. This is called Co-Investment.
What is the level of Co-Investment?
The government will provide 100% of the funds up to the maximum funding band value, for 16-18 year olds, if the employer has 49 or less employees, otherwise the co-investment system applies as explained below.
For learners aged 19+ the co-Investment system applies between government funding and the employer. The government will release 90% of the funding band provided the employer makes a mandatory 10% payment to the training provider. Additional costs may be incurred for training services, which will be agreed with the employer prior to training commencing.
How is Pricing Agreed?
The provider and employer decide on a payment schedule and put this in a written agreement. This acts as the contract for delivery between the two partners involved in the apprentice training (the employer and the training provider). All employer payments must be in cash (monetary) and not “in kind”.
Are there any extra incentives?
Employers who take on a 16-18 year old will be eligible to apply for a £1,000 government incentive, payable in two equal instalments after 3 months and after 12 months in programme. This will be sent from your training provider.
New update: Apprenticeship Levy Transfer
The apprenticeship levy allows employers a real opportunity to invest in high-quality training, helping to grow and sustain their business and develop a highly skilled workforce. The transfer move will lead to the creation of many quality apprenticeships and will help support non-levy employers who may not have taken on apprentices otherwise.