Non-Levy Employers

Non-Levy Employers

Introduction

The government has set out its vision for Apprenticeships until the year 2020 which includes the introduction of Funding changes for those employers that will not be liable to pay the levy.

Who will these funding changes apply to?

It will apply to those employers who have a salary/wages bill of less than £3million pounds per year.

When will the new funding system begin?

The new funding system begins in May 2017.

How will it work?

  • As an employer you will be entitled to choose:
  • The training you would like your Apprentices to receive
  • An approved Training Provider
  • An End Point Assessment organisation using the registers available from the National Apprenticeship Service

What Funding will you receive?

The government will pay 90% of the funding available for the Apprenticeship the learner wishes to complete.

Employers will have to make a 10% contribution to the cost of the training for each Apprenticeship.

How will Employers pay?

Employers will pay the 10% contribution to the Training Provider and this payment will be spread over the life time of the Apprenticeship.

Example of the 10% Employer contribution:

Total Apprenticeship Funding Value 

£3000

Government will fund 90%

£2700

Employer contribution

£300

Length of Apprenticeship

15 Months

Employer monthly conrtibution to the Training Provider

£20

This employer contribution is subject to VAT.

What are the Funding values for each Apprentice?

All Apprenticeship standards and frameworks will be allotted to one of 15 funding bands that specify the amount of public money available to be used against its cost.

The bands DO NOT include any required provision for English and Maths training and qualifications up to and including Level 2. Maths and English provision to Level 2 is priced at a flat rate of £471 for at least the first year. This funding is drawn by the provider through the Individualised Learning Return (ILR) mechanism.

Payments for learning support for Apprentices are also not included.

 

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