For larger businesses - The Apprenticeship Levy
All employers with a payroll bill in excess of £3 million per annum have to pay an Apprenticeship Levy of 0.5% on the amount that the pay bill exceeds £3m pa, paid monthly through PAYE.
For small businesses who don’t pay the apprenticeship levy – co-investment.
Smaller companies who don’t pay the apprenticeship levy, have access to the government’s co-investment fund to support with the cost of apprenticeship training.
The government asks that employers make a 5% contribution, and the government pays the remaining 95% up to the maximum amount of funding set for the apprenticeship chosen.
Employers with less than 50 employees are not required to make any financial contribution towards the cost of an apprenticeship for an employee aged between 16 and 18, or someone who is under 24 and has left care or has a local authority health and education place.
Levy Transfers to fund 100% of your apprenticeship costs
You can now search the government portal for apprenticeship funding opportunities via a levy transfer. As a business of any size, you can use this service to apply for funding from large businesses that want to fund 100% of your apprenticeship training and assessment costs by transferring some of their apprenticeship levy.