Apprenticeship funding


There is now more funding available to businesses than there ever has been before. Not only is there majority funding for the cost of apprenticeship training, if not all of the costs for small business, there are now new incentive payments to be paid directly to business to use as they see fit.

At the same time as introducing these new financial initiatives to encourage employers to take on apprentices the government has also launched the new Digital Apprentice Service Account to allow employers to easily control all apprenticeship funding and incentive payments in one online portal.

The Government has realised that there is an ongoing national skills shortage and understand that apprenticeships are a very viable option to help fill this skills gap, as well as helping employers expand their business.

The incentive payment for hiring a new apprentice is designed to support employers to find the skills they need to help recover from the economic impact of Covid-19 whilst creating new jobs.

Who gets what funding?

There are different levels of funding for apprentice training available to levy and non-levy employers.

Non-Levy Employers: 

For new apprenticeships starting on or after 1 April 2019 you pay 5% towards the cost of apprenticeship training. The government will pay the rest (95%) up to the funding band maximum.

Small employers with less than 50 employees do not need to pay anything towards the cost of training for 16-18 year olds, as the government will cover the cost 100%. You will still have to pay their wage though!

Levy Employer:

If you are a levy employer (wage bill of more than £3million), 0.5% of your paybill is ring-fenced for training. The government will add an extra 10% to the pot if you decide to take on an apprentice. You can also choose to transfer any unused funds (max 25%) to another employer, using the apprenticeship service. This would help them to pay for apprenticeship training and assessment. Once you have used all the funds automatically transferred to your levy pot (o.5% of payroll) you can carry on training apprentices at the same contribution rate as non-levy employers.


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Aspire Training Team offers bespoke apprenticeships in Childcare, Business Administration, Customer Service, and Leadership & Management where we match the young person to the employer.

In order to start a new apprenticeship and claim the new initiative payment, you must sign up your business to the new Digital Apprenticeship Service. The apprenticeship service is free to use and provides employers with the choice over how they want to fully control the use of apprenticeships and make them work for their business. All employers will be able to control how they pay for their apprenticeship training and assess and recruit their apprentices.

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