Apprenticeship Funding & Costs for Employers
Here at Smart Training & Recruitment, our personalised recruitment service is free of charge for all businesses. If the Apprenticeship Levy applies to your business, you can use the funds towards the cost of training. The Government will provide 95% (or 100% in some cases) of the balance to cover the cost of your training if you are a non-levy paying employer, but some employers may be required to contribute the remaining 5% towards the costs of training.
If you hire an apprentice you will be required to pay at least the minimum wage for apprenticeships which is set by the Government. You can find the most up to date information by visiting https://www.gov.uk/apprenticeships-guide/pay-and-conditions
Your business may be eligible for 100% funding if your annual wage bill is less than £3 million, and you have less than 50 employees. In this case, you will receive 100% funding for any Apprentices aged 16-18, and 90% for any aged 19+. You will be required to contribute the remaining 5% of the funding costs for any apprentices over the age of 19.
If you have more than 50 employees and your wage bill is less than £3 million, you will receive 95% funding for any Apprentices aged 16+. You will be required to contribute the remaining 5% of the funding costs.
Aside from the Apprenticeship Levy, there are also other sources of funding available for employers.
Teen Grant: The Teen Grant is a £1000 incentive for every new apprenticeship that starts from 1st May 2017 for learners aged between 16-18. Payable at the end of month 3 and month 12 of each learner’s qualification. This incentive also applies to any learner aged 19-24 that come from a care background.
Entrepreneur Offer: For small businesses employing less than 50 employees, 16-18 apprentices remain contribution free. This incentive also applies to any learner aged 19-24 that come from a care background.
For more information about our employer incentives, please contact us.