Non-Levy Paying Employers
If you do not pay the levy, you won’t need to use the apprenticeship service to pay for apprenticeship training and assessment until at least 2018. When you do start using the apprenticeship service to pay for apprenticeship training, there will be information and advice available on how to do so.
When the new funding system comes in effect in May 2017, you can choose the training you’d like your apprentices to receive, an approved training provider and an assessment organisation using the registers available on the apprenticeship service. Help with this is available from the National Apprenticeship Service.
Cost of Training Apprentices
Every individual apprenticeship framework and standard will be allocated to 1 of 15 new funding bands. Employers and providers will agree a price for the apprenticeship up to the cap of the allocated band. Payments for training will be made directly to the provider and you will be able to agree a payment schedule and spread it over the duration of the apprenticeship.
Most employers will be asked to make a 10% contribution to the cost of this training and the government will pay the rest (90%), up to the maximum amount of funding available for that apprenticeship. The upper limit of the funding band will cap the maximum price that government will ‘co-invest’ towards.
However, if you are an employer with less than 50 employees and are recruiting a 16-18 year old apprentice, you will not be required to make any cash contribution. Employers will also receive a £1,000 incentive payment, to be paid through the provider, for hiring a 16-18 apprentice.