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Apprenticeship funding – how it works
EMPLOYMENTANDSKILLS
The apprenticeship Levy is part of a wider plan of apprenticeship reforms introduced by the government.
It affects the way apprenticeship training is funded in Englandand is designed to increase the number and quality of apprenticeships as a way of meeting current and future skillneeds.
In short
• Any UK employer, in any sector with a payroll of more than £3 million per year will pay the levy through PAYE process• Employers are entitled to a £1000 incentive for recruiting an apprentice aged 16-18 or an apprentice aged 19+ who requires additional support or has previously been in care• The government will fund the full cost of any apprenticeship training for a business that has less than 50 employees, if the apprentice is under 19 years old.• If an employer with a payroll of less than £3 million employs an apprentice they may be required to meet 5 per cent of the training cost, the government will pay the rest.• Employers who pay the levy wishing to support apprenticeships in other businesses, can transfer up to 25% of the annual funding in their apprenticeship service account.• All apprentices are required to undertake “off-the-job training”. This must be completed during the apprentice’s paid hours as a minimum of 20% of their contracted hours.
HOWITWORKS.
Payroll billover £3m
You’ll pay 0.5%of your annual payroll andreceive a £15K allowance
£1000incentive for recruitingan apprentice aged
16-18 or for someoneaged 19+ who requiresadditional support or
has been in care
£1000incentive for recruitingan apprentice aged
16-18 or for someoneaged 19+ who requiresadditional support or
has been in care
£1000incentive for recruitingan apprentice aged
16-18 or for someoneaged 19+ who requiresadditional support or
has been in care
Use fundingfor existing staff ornew apprentices
Use fundingfor existing staff ornew apprentices
Use fundingfor existing staff ornew apprentices
Government will top upyour contribution with an extra10%
Government will top upyour contribution with an extra10%
Government pay95%
of apprenticeshiptraining costs
Government pay100%
of apprenticeshiptraining costs
You’ll pay 5%of apprenticeshiptraining costs
No contributionFully funded
apprenticeship training
Payroll billunder £3m
Less than 50 employees,employing apprentices
aged 16-18& payroll bill under £3m
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