Discover everything you need to know about apprenticeship funding and choosing a training provider with our Apprenticeship Funding Guide.
Guide to Apprenticeship Funding
The Apprenticeship Levy
When reading through our guide to apprenticeship funding, it’s important to understand the Apprenticeship Levy. Since the 1st May 2017, all employers with a wage bill over £3 million have to pay the Apprenticeship Levy.
• The Apprenticeship Levy requires all employers to pay 0.5% of any wage bill over £3 million into the Government’s new apprenticeship service. This goes towards apprenticeship course fees in the UK.
• Those who contribute will be able to access the funds they have paid to cover the cost of apprentice training through a new digital account. The Government then top-up this amount by an additional 5%.
Choosing an Apprenticeship Training Provider
The employer is expected to approach an apprentice training provider, to carry out their apprenticeship training, such as Elevation Training Academy.
The Government’s approved list, includes all credible training providers. The employer will need to negotiate the cost of delivering the training and agree on and sign a contract. Once this is complete, the apprentice can begin their apprenticeship.
Paying for Training From the Levy
• The Government has set funding bands to determine the maximum amount an employer can spend on each apprenticeship training course through their digital account. An employer will pay in full the amount they agree with the training provider above this maximum level. The funding bands vary by apprenticeship occupation and level only.
• Each employer is entitles to £1000 incentive payment for recruiting an apprentice aged 16-18, or aged 19-24 with an Education, Health & Care (EHC) plan. This is paid in two instalments by the training provider – £500 after 3 months and £500 after 12 months.
• Funds in the digital account will expire after 24 months if not used.
Employers Who are Exempt From the Levy
• A company with over 50 employees, but doesn’t pay the levy, will need to pay 5% of the training costs of each apprentice taken on, direct to the college from the Government’s approved list.
• A small employer with less than 50 employees will not have to contribute towards training an apprentice under 18 years of age, or aged 19-24 with an EHC plan, providing the cost of their training is within the maximum funding band.
• Employers who do not pay the levy are subject to the same apprenticeship funding bands as employers who do.
• Any employer is entitled to £1000 per 16-18 year old apprentice taken on, or 19-24 year old with EHC plan, the same as employees that do pay the levy.
How Does Apprenticeship Funding Work?
|Employer||You Pay||Government Pays||Incentive Payments|
|Apprenticeship Levy paying employer||The cost of training from your digital account and 5% of any amount over this. Plus, any fees over the maximum funding band.||95% of any fees your digital account doesn’t cover, up to the maximum funding band.||£1000 per every 16-18 year old apprentice or 19-24 year old with an EHC plan.|
|Non Apprenticeship Levy paying employer (50+ employees)||5% of any apprenticeship training fees, plus any fees over the maximum funding band.||95% of any apprenticeship training fees, plus any fees over the maximum funding band.||£1000 per every 16-18 year old apprentice or 19-24 year old with an EHC plan.|
|Non Apprenticeship Levy paying employer (fewer than 50 employees)||0% of any apprenticeship training fees for 16-18 year olds or 19-24 year old with an EHC plan. 5% for all other apprentices. Plus, any fees over the maximum funding band.||100% of any apprenticeship training fees for 16-18 year olds or 19-24 year old with an EHC plan. 95% for all other apprentices up to the maximum funding band.||£1000 per every 16-18 year old apprentice or 19-24 year old with an EHC plan.|
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Elevation Training Academy are an award-winning team of training, HR, recruitment and apprenticeships specialists within the fire safety and security sectors. We understand that there is a skills gap in the industry, combined with an ageing workforce, which is impacting the future of installers and their businesses.
Ultimately, we pride ourselves on delivering effective, engaging and high-quality training that results in an exceptional generation of talent.