The way apprenticeships are funded has changed. The Government has introduced the Apprenticeship Levy which will be used to ensure that employees have the necessary skills and work experience to help your company flourish. The levy will also be used to promote apprenticeships and fund the Apprenticeship Service.
From 6 April 2017 companies that have a payroll bill of over £3,000,000 will pay an apprenticeship levy of 0.5%.
If your company has a payroll bill of under £3,000,000 you will not have to pay the levy.
A co-investment rate has been introduced to support employers that do not pay the levy. Co-investment means that the costs of training and assessing apprentices will be split between the employer and the Government. If you fall in to this category, you will pay 10% towards the cost of apprenticeship training and government will pay the remaining 90%.
If you have any queries or require further information about the levy please visit the Apprenticeship Funding Guide.