Apprenticeship costs halved
Smaller businesses looking to take on an apprentice will receive a financial boost this month as their contribution towards apprenticeship training is halved from 10% to five per cent.
Non levy-paying businesses (those that have a wage bill of less than £3m per year), can now access extra funding for apprenticeship training and assessment through the shared government-employer co-investment scheme.
Currently, the government pays 90% of the contribution and employers make a 10% contribution, up to the maximum amount of funding available.
From now, apprenticeship contributions from the government will go up to 95%, meaning non levy-paying organisations will now only pay a five per cent contribution to fund their apprenticeship programme.
For example, if the cost of the Apprenticeship Standard was £11,000 – the digital marketer apprenticeship standard Level 3, which is delivered over 13 months – then under these new terms the government will pay £10,450, while the employer’s contribution will only be £550.
Meanwhile, employers who do not pay the levy are also eligible for additional funding and support, depending on the apprentice’s age and circumstances, or if the business employs fewer than 50 employees.
There are also still grants of £1,000 available to support the employment and training of 16-18 year olds, or apprentices with an EHC plan.
For further advice, Remit Training is available to help companies understand the benefits of apprentices. It offers apprenticeships across a range of sectors including automotive, IT, digital marketing, business, leadership and management leadership, hospitality, health and social care, food manufacturing and retail.
