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Non-Levy Paying Businesses

In spring 2017 the way the government funds apprenticeships in England is changing. Some employers will be required to contribute to a new apprenticeship levy, and there will be changes to the funding for apprenticeship training for all employers in England. See below for further information for non-levy paying employers.

  • Applicable to all UK businesses with an annual staff paybill of less than £3m.
  • A new ‘co-investment’ structure will be required for all apprenticeship programmes.
  • This means you will have to pay 10% of the cost of the apprenticeship programme, while the government pays the remaining 90%. (e.g. a £5,000 apprenticeship will require a £500 ‘co-investment’ from the employer).
  • Your ‘co-investment’ cost is spread over the lifetime of the apprenticeship (e.g. 12 monthly payments for a Level 2 Business Administration Apprenticeship).
  • The government will fully fund programmes if your business has 49 staff or less and you employ an apprentice aged 16 – 18 years old when they start.
  • Every individual apprenticeship framework and standard will be allocated to a funding band.
  • The upper limit of the funding band will cap the maximum price that government will ‘co-invest’ towards.
  • Funding costs will be determined for eligible apprentices based on programme, age and prior qualifications.
  • Additional financial incentives are available for employing 16 – 18 year olds (£1000 per apprentice).
  • This is effective for any new apprentice who starts from 1st May 2017.
  • Any apprenticeship programme starting before 1st May 2017 will be on the existing funding rules.

For more information and to find out how we can help you, call us on 01422 24 19 64