Apprenticeship Funding | Calderdale College

Realising Improvement in Skills & Enterprise
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The Apprenticeship Levy

Realising Improvement in
Skills & Expertise

Increase your understanding of the Apprenticeship Levy.

Who funds an Apprentice?

From 1 April 2024, if your organisation does not pay the apprenticeship levy, the Government will pay 100% of the costs of training and assessment if:

at the start of their apprenticeship training the apprentice is aged between 16 and 21 years old.
you have fewer than 50 employees, and at the start of their apprenticeship training the apprentice is aged between 22 and 24 years old and has either an Education, Health and Care (EHC) plan provided by their local authority and/or has been in the care of their local authority.

For all other apprentices, the Government will pay 95% of the costs of training and assessment, whilst you pay the remaining 5%.

The Government also pays £1,000 to employers if they train a 16-18 year old apprentice, or if they train a 19-24 year olds leaving care or who have a Local Authority Education and Healthcare plan.

If you’re an organisation that has a pay bill of over £3m, you pay a UK tax of 0.5% of that total pay bill to fund apprenticeship training.

The Apprenticeship Levy

The Apprenticeship Levy affects all organisations with an annual payroll of over £3m, regardless of whether they already currently employ Apprentices or not. It is payable by employers in the UK at the rate of 0.5% of the payroll cost through PAYE alongside Income Tax and National Insurance.
There is a Levy Allowance worth £15,000 for each tax year. This means the levy is only payable on wage bills over £3m (because 0.5% x £3 million = £15,000).
It is possible to recover 100% of your Apprenticeship Levy and significantly increase the skill levels of your existing staff or new recruits.
In addition, the Government will apply a 10% top-up to your funds. This means for every £1 that enters your digital account, you will have £1.10 to spend on apprenticeship training.

The Apprenticeship Service

The Apprenticeship Service is an online digital system (similar to online banking) that has been set up to support employers with securing apprenticeship training. The online service allows employers to financially manage their apprenticeship programme and help them to estimate their financial spend and recruit apprentices.

To set up an Apprenticeship Service account go to:
www.gov.uk/guidance/manage-apprenticeship-funds.

Non-Levy Payers

Funding & Contributions

Employers who do not pay the Apprenticeship Levy will benefit from
Government support towards the costs of their apprenticeship training.

From 1 April 2024, if your organisation does not pay the apprenticeship levy, the Government will pay 100% of the costs of training and assessment if:

at the start of their apprenticeship training the apprentice is aged between 16 and 21 years old.
you have fewer than 50 employees, and at the start of their apprenticeship training the apprentice is aged between 22 and 24 years old and has either an Education, Health and Care (EHC) plan provided by their local authority and/or has been in the care of their local authority.

Co-Investment

For all other apprentices, and employers that have insufficient funds in their digital account the Government will pay 95% of the costs of training and assessment, whilst you pay the remaining 5%.

Employer Incentive

The Government will also pay £1,000 to employers if they recruit and train a 16-18 year old apprentice, or 19-24 year old leaving care or who have a Local Authority Education and Healthcare plan.