Apprenticeships

The Apprenticeship Levy

Until recently the government fully funded apprenticeships. From the 1st  of May 2017, Apprenticeship funding has changed.

Apprenticeship Levy payers

If your business has a wage bill of over  £3,000,000 , then 0.5% of the total amount of your wage bill, as a tax, will be automatically paid (through HMRC) into an apprenticeship funding pot.

You will automatically receive an offset amount of £15,000, which you will be able to access via a digital account. 

This can be used to fund the apprentices training costs  only. You cannot  use this for salaries or any other training.

Non-Levy payers - If your business has a wage bill of under £3,000,000

Apprentices aged 19+

You will be required to pay a 10% contribution to the total cost of the apprenticeship training.

The other 90% cost of the training will be subsidised by the government.

Apprentices aged 16-18

You will not be required to contribute 10% to the apprenticeship training cost.

The apprenticeship will be fully funded by the government.

Construction employers, please note that The Levy does not replace the CITB Levy.

There will be a number of grants/incentives available to apprenticeship employers:

  • The Age Grant

For SMEs, taking on up to 5 apprentices (aged 16-24) for the first time.

The Age Grant funding, is likely to run out in August 2017.

You can still apply for this until this date.

  • Incentive for Apprentices aged 16-18

Both Levy and non-Levy paying employers

£500 paid 3 months after the apprentices’ start date and £500 paid at the end of the apprenticeship.

  • Incentive for Apprentices aged 19-24 with an Education, Health & Care Plan

Both Levy and non-Levy paying employers

£500 paid 3 months after the apprentices start date and £500 paid at the end of the apprenticeship.

 

The payment for these grants will be made directly to your company account, for you to utilise how you wish.

We recognise that in order to fully understand these changes, you may wish to discuss the impact on your business.

Barnet and Southgate College have an experienced employer engagement team.  

We can offer you a free, no obligation discussion to assist you in understanding how your business may be affected, and can offer advice if you wish to consider taking on an apprentice.

Call our Team on 020 3764 4333 to discuss your requirements or complete this short form  and we’ll get back to you .