Employers with an annual wage bill of less than £3 million 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. From April 2019 the government released 95% of the funding band provided the employer made a mandatory 5% 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.
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. Click here for more information…
Apprenticeship funding 2020
From January 2020, employers who do not pay the Apprenticeship Levy are now able to access the full benefits of the Apprenticeship Service, which provides greater control when choosing Apprenticeships & a Training Provider. These employers will be able to:
- Choose a range of Apprenticeship Standards
- Choose a provider from the Register of Apprenticeship Training Providers (RoATP) to deliver Apprenticeship training
- Find an End-Point Assessment Organisation (EPAO)
- Reserve access to funding for Apprenticeship training and assessment
- Agree contracts with providers and benefit from collaborative relationships by delegating permissions to providers to service their accounts.
Please note until March 2021 employers who do not pay the Apprenticeship levy will be able to access Apprenticeship training either through a provider with an existing Government contract or via the Apprenticeship Service. By March 2021 it is intended all Apprenticeship starts will be arranged through the Apprenticeship Service. (This was due to be Autumn 2020 but because of Covid-19 this has been extended until 2021.)
In order to access funding through the Apprenticeship Service non-levy employers will need to sign an Agreement with the Education and Skills Funding Agency (ESFA), for the latest guidance, click here.
For more information; click here to contact a member of our Business Development team…