In order to fulfil their commitment to creating three million apprenticeships in England by 2020, the Government has set aside funding to assist in training and assessment costs. This funding is available as a 10% account top up for levy paying customers or a 95% payment contribution to non-levy payers.
If you pay the apprenticeship levy
Businesses with an annual pay bill of £3 million or more are required to pay into an Apprenticeship Levy/ The levy is charged at 0.5% of your annual pay bill and is paid through PAYE. The Government will apply a 10% top-up payment to funds contributed, which will be collectively accessible through an online account called the Digital Apprenticeship Service. Companies will create an account and both the levy and Government top-up will be processed monthly.
The funds must be used for apprenticeship training and assessment with an approved training provider and assessment organisation.
Transferring funds to another employer
At the National College for Advanced Transport & Infrastructure we can facilitate a funds transfer if you have unused funding. This allows an organisation to transfer funds from their levy account to a non-levy paying organisation. If you wish to take this step, the college can assist by nominating a number of deserving organisations for you to select from.
If you do not need to pay the apprenticeship levy
Organisations with a pay bill of less than £3 million per year are not required to pay into an apprenticeship levy and can apply for funding from the government or other organisations to cover training and assessment costs.
If your pay bill is less than £3 million, the Government will fund 95% of your apprenticeship training costs up to the funding band maximum. Additional funding support is available for employers with fewer than 50 employers. In these cases, the Government will pay 100% of the costs for apprentices aged 16-18, and those aged 19-24 with an education and health care plan.
In the case that an employer with a service account has funds remaining they can opt to transfer funds to a non-levy paying organisation. Funds can be used to pay for new apprenticeship training and assessment for apprenticeship standards. Transferred funds can’t be used for apprenticeship frameworks.
The national college is registered on the ‘register of apprenticeship training providers ‘. To talk to a member of the college team about the apprenticeship levy and how the college can help with training your apprentices, email us at [email protected] or call us on 0330 120 0375.
More information on the apprenticeship levy can be found on the government’s website, click here.