lEVIES AND INCENTIVES

Appreticeship levies and government benefits

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Apprenticeship levy


The levy was introduced on 6 April 2017 and is charged at a rate of 0.5% of an employers’ pay bill, paid through PAYE on a monthly basis.


Each employer will have a levy allowance of £15,000, this is not a cash payment. It works in a similar way to the personal tax allowance and cannot be used to purchase apprenticeship training.


Funds will be taken in month – and available to spend in the following. All payments will be ‘one month in arrears’. Employers will receive a 10% top up to monthly funds entering their Apprenticeship Service account.

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  • APPRENTICESHIP FUNDING IN ENGLAND

    In England, government will fund 90% of the total cost of theapprenticeship, and employers will contribute the remaining 10% of the total cost.


  • GOVERNMENT INCENTIVES

    There are additional incentives available from the government to help all employers when recruiting younger apprentices.


    • If the employer has less than 50 employees, the government will fund the total cost of the apprenticeship for 16-18 year old apprentices. For apprentices aged 19 and over, the 10% employer contribution will apply.


    • All employers will be eligible to receive a £1,000 incentive payment for each 16-18 year old apprentice. Payment will be made to employers by the training provider in two equal instalments at 3 and 12 months.


    These incentives also apply to 19-24 years olds who have previously been in care, or who have a Local Authority Education, Health and Care plan.

apprenticeship funding in scotland

 Apprentices aged 16-19 years

100% funded by the Scottish Government via Skills Development Scotland (SDS)

 Apprentices aged 20-24 years

Partially funded by the Scottish Government via Skills Development Scotland (SDS)

 Apprentices aged 25 and over

Apprenticeships fully funded by employer

  • GRADUATE APPRENTICESHIPS

    For Graduate Apprenticeships, Skills Development Scotland will fully fund the learning costs for the duration of the course.  This is paid directly to the college or university.

  • ADOPT AN APPRENTICE

    The financial incentive helps cover the wage and recruitment costs of taking on a Modern Apprentice who has been made redundant from another employer. It should be used to support an apprentice with employment for a minimum of 12 months.

  • EMPLOYER RECRUITMENT INCENTIVE

    An Employer could get up to £4,000 if recruiting a young person who’s faced significant barriers to employment. 


    The funding is a contribution towards the additional costs of recruiting a young person during their first 52 weeks of sustainable employment.


    The incentive is a co-investment in young people with a view to helping businesses grow.

    As a national minimum, it is expected that 25% of places allocated to local authorities will support young people who are care leavers, carers, an ex-offender or disabled.


apprenticeship programs

 

It and digital apprenticeship programs. get in touch if you need us to go through a program or need help in deciding which kind of specialist skills you need for your organisation

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