1. What are the changes to apprenticeships and how will they affect my business?

    • The Government has committed to deliver 3 million Apprenticeship starts by 2020, which is the reason for the upcoming changes to Apprenticeships.
    • From 1st May 2017 new funding guidelines were put in place whereby there is a Levy process for large employers and a contributory model for other employers.
       
  2. Will my company have to pay the Levy or a Contribution?

    • You will be a Levy Payer if your annual PAYE exceeds £3 million.
    • You will pay a 10% contribution (Co-Investment) if your annual PAYE is less than £3 million, you have 50 + employees or your apprentice is 19 years +.
    • Employers of less than 50 employees taking on one or more apprentices aged 16-18 do not have to contribute as the Government funding is 100%
       
  3. Are there any funding incentives for employers?

    • There is a £1,000 incentive for each 16-18 yr old Apprentice recruited paid in 2 instalments (at 3 and 12 months after the start date).
    • Other funded support is available towards the cost of Functional Skills in Maths/ English for the Apprentices and is paid to the training provider.
    • There may be further incentives available depending on the individual circumstances of the Apprentice recruited. These will be discussed during initial meetings.
       
  4. How much will I pay?

    • Less than 50 staff and apprentices to be recruited are 16-18 years old:
      • 0% contribution. Skills Funding Agency contributes 100%.
    • Less than 50 staff and apprentices to be recruited are 19+ years old:
      • 10% contribution (it is estimated that this will be between £200 and £300 payable in instalments or as a whole). Skills Funding Agency contributes 90%
    • More than 50 Staff and apprentices to be recruited are 16 years plus:
      • 10% contribution (as above)
    • Levy Payer – The levy will be charged at a rate of 0.5% of the annual pay bill. This link is a simple tool for calculating Levy credit http://www.fas.report

 

If you wish to discuss any matters regarding apprenticeships please do not hesitate to contact us.