If your organisation's wage bill is over £3m, then you are automatically paying 0.5% of your wage bill into a levy account to fund apprenticeships. If you haven't already set up a digital account to be able to see your levy account balance you can create one now. If you need guidance on how to do this, please contact us.
Once your account is up and running, you will start to see your monthly levy payments in your account. There is a fixed annual allowance of £15,000 which is used to offset against the levy and for every £1 you pay into your account the Government contributes 10p. Your levy payments and the Government's contribution can only be used towards the cost of apprenticeship training.
The Government now funds 95% of the cost of training and assessment for an apprentice with the remaining 5% contribution or co-investment paid by you. This contribution is paid directly to the training provider. You can spread your contribution with us over monthly payments.
UEL's experienced apprenticeship team will guide you as the employer through the process of hiring an apprentice. An organisational training needs analysis will be completed with the employer to identify skills shortages and establish the business needs.
Employers will receive £3,000 for hiring new employees as an apprentice of any age who started their apprenticeship from 1 April 2021 to 30 September 2021. The incentive payment is in addition to the £1,000 employers already receive for hiring an apprentice aged 16 to 18 years old.
Learn more about the apprenticeship funding rules on the government website.