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Apprenticeship funding for levy payers

Wednesday 24th May 2017

The Apprenticeship reforms have officially launched, but with a number of questions still lingering and snap election on the horizon, there is still an element of uncertainty.

Debbie Scotton, Business Development Manager at South Leicestershire College discusses the new Apprenticeship funding rules and the impact for levy-paying employers.

“Since April, all levy paying employers (those whose annual PAYE bill is £million and over) will have been paying into their Apprenticeship Service Account. This money can be reinvested into the organisation through Apprenticeship training – to new and/or existing staff

“The government will be applying a 10% top-up to these funds every month. Employers will also be receiving a £1000 payment if they employ an Apprentice who is:

  • Aged 16-18 at the start of their Apprenticeship
  • Aged 19-24 and has an education, health and care plan provided by the local authority or has been in the care of a local authority

“If these funds run out in any month, employers will only be required to pay 10% of the costs of training and the government will co-invest the remaining 90%.

“This will coincide with the introduction of the new Apprenticeship standards. As the current frameworks begin to be phased out, these new standards, which have been designed by employer groups, will be placed into one of 15 upper limits ranging from £1,500 to £27,000. Employers and training providers will negotiate costs within these limits.

“As a training provider who is officially listed on the Register of Apprenticeship Training Providers, we are working closely with levy-paying organisations to support the through these changes and design an Apprenticeship training programme to meet their needs.”

To find out more about employing an Apprentice, contact the College’s Business Development Team: 0116 264 3545


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