How Apprenticeships are funded
The way apprenticeships are funded has changed since May 2017.
If you are an employer with an annual pay bill of less than £3 million you will not have to pay the levy. The UK Government will fund 90% of your apprenticeship training.
Find out more at www.gov.uk/take-on-an-apprentice/get-funding
If you are an employer with an annual pay bill over £3 million each year, you will pay the apprenticeship levy.
You can read the official guidance at www.gov.uk/guidance/pay-apprenticeship-levy
If you are interested in transferring your levy to another employer to help fund an apprentice through training, watch the video below to see how you can do this:
From April 2018 employers who pay the apprenticeship levy will be able to transfer apprenticeship funds to other organisations to pay for their apprenticeship training and assessment. For the first phase, employers who have unused funds in their apprenticeship account will be able to transfer some of those funds to another employer. The number of employers that you will be able to transfer funds to will increase over time and after user feedback from the first phase.
This ESFA blog will help you to prepare for transfers as a levy-paying employer.
If you take on an apprentice aged 16-18 the government will pay an additional £1,000 to you over two equal payments, one at 3 months and the other at 12 months. Initially, these payments to you would be made via your training provider. Over time, the Government intends to improve this system where you will receive the funds directly.
If, on enrolment, the apprentice is 16-18, and you employ less than 50 staff, the Government will fund 100% of the Apprenticeship training costs.