Funding for employers

Information for non-levy and levy organisations
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Funding for non-levy employers

The information on this page is for employers who do have an annual payroll less than £3,000,000 . If your payroll is above this figure then you should view our apprenticeship levy page.

Every apprenticeship is slightly different: Different durations, different content and the delivery method from training providers are never quite the same. Each has a funding band, that is the maximum amount of funding available for an apprenticeship. Funding bands are subject to change.

Example of what a non- levy employer would pay

Employee Size or Payroll

Apprentice Age (at start)

Apprenticeship Funded?

Training Costs (Paid by Employer)

Wage (Paid by Employer)

Under 50 (non- levy) employees

16, 17 or 18

100%

£0

Yes

19+

95% co-funded

5%

Yes

50  (non Levy) employees  plus

16, 17 or 18

95% co-funded

5%

Yes

19+

95% co-funded

5%

Yes

Levy payer

+£3m payroll using only levy funds

16, 17 or 18

Paid from the levy until it has been used up then it will be co-funded

100% or 5% co-funded when levy uses

Yes

New government incentives

Cash incentives for employers start from 1st April 2021 to hire new apprentices (new jobs) to the 31st September 2021:

  • The Government will pay an incentive of £3000 for EACH apprentice recruited, regardless of age!
  • The incentives are only payable for new apprentices hired, and not existing staff
  • This incentive payment is IN ADDITION to the existing £1000 incentive paid when an employer recruits a 16 to 18-year-old (or someone under the age of 25 with an education, health and care plan where that applies).

The employer will receive their apprenticeship additional payments in two equal instalments. The first payment will be received after 90 days of the start of the apprenticeships starting and the second payment will be received 365 days after the apprentice starts. The additional payments are made to the employers’ training provider, who then pass the money on to the employers. The payments will come directly from the government and will not be deducted from an employer’s account.

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