A summary is below, but if you are unsure of anything and would like to discuss this with our team, please get in touch.
Costs are dependant on the size of your business:
Fewer than 50 employees
Apprentice is aged 16-18: FREE
Apprentice is aged 19+: 5% of the cost
Apprentice is aged 19-24 & HCP or Care Leaver: FREE
£1000 incentive available? Yes for 16-18-year-olds*
* An incentive payment is also available for Apprentices who are 19-24 years old and have a current EHCP (Educational Health Care Plan) in place or are leaving care.
More than 50 employees
Apprentice is aged 16-18: 5% of the cost
Apprentice is aged 19+: 5% of the cost
Apprentice is aged 19-24 & HCP or Care Leaver: 5% of the cost
£1000 incentive available? Yes for 16-18-year-olds*
* An incentive payment is also available for Apprentices who are 19-24 years old and have a current EHCP (Educational Health Care Plan) in place or are leaving care.
Levy paying employer
Apprentice is aged 16-18: Full cost
Apprentice is aged 19+: Full cost
Apprentice is aged 19-24 & HCP or Care Leaver: Full cost
£1000 incentive available? Yes for 16-18-year-olds*
* An incentive payment is also available for Apprentices who are 19-24 years old and have a current EHCP (Educational Health Care Plan) in place or are leaving care.
Levy paying employer (once levy spent)
Apprentice is aged 16-18: 5% of the cost
Apprentice is aged 19+: 5% of the cost
Apprentice is aged 19-24 & HCP or Care Leaver: 5% of the cost
£1000 incentive available? Yes for 16-18-year-olds*
* An incentive payment is also available for Apprentices who are 19-24 years old and have a current EHCP (Educational Health Care Plan) in place or are leaving care.
If you are a large employer and pay into the levy.
All employers with a PAYE bill of over £3m pay a 0.5% Apprenticeship Levy per annum which is automatically deducted by HMRC on a monthly basis. The Government tops up the contribution by 5%. The levy can only be utilised to pay for Apprenticeship training, which does not include Apprentice wages, additional training or Maths & English.
The levy account is managed by the employer through a digital portal – The Apprenticeship Service – where employers can source Apprenticeship providers, recruit Apprentices, pay providers and manage their levy balance. The Gov.uk website explains how this works - https://www.gov.uk/government/publications/apprenticeship-levy-how-it-will-work/apprenticeship-levy-how-it-will-work#pay-apprenticeship-levy)
We have a team of dedicated assessors who can support you to understand the funding so please contact us if you have any questions (link to contact us section).
If you don’t pay into the levy.
The Gov.uk website explains the above table in more detail:
https://www.gov.uk/government/publications/apprenticeship-levy-how-it-will-work/apprenticeship-levy-how-it-will-work#non-levy-paying-employers
We have a team of dedicated assessors who can support you to understand the funding so please contact us if you have any questions.
