Apprenticeship funding differs depending on the size of the employer:
Levy payers: large employers
Large employers are classed as businesses with a wage bill of £3m or more. They already pay the Apprenticeship Levy. This is 0.5% of total wage bill minus a £15K allowance. The Levy is paid alongside the company’s PAYE bill, placed into an online Apprenticeships account and topped up with a 10% Government contribution.
Employers use the funds they have already paid into this account to cover the costs of apprenticeship training and assessment.
If you’re a large employer and you haven’t yet starting spending funds in your Apprenticeship account, Mode can help you with this. Don’t forget, unused funds in employers’ Apprenticeship accounts expire after 18 months. Notably, if you have used up all of your levy you can still enrol candidates onto the programme. Providing you have spent your levy funds, the government will fund 95% of the programme for additional apprentices.
Non-levy paying employers
Employers with a wage bill of less than £3m do not have to pay the Apprenticeship Levy.
16-18 year old apprentices training costs are met by the government. Apprentices over the age of 19 their employer is eligible for 95% of their apprentices’ training costs; they pay 5%. Mode obtains the 95% funding directly from the Government, we then invoice the employer for remaining 5%.
Pay and conditions for an apprentice
You are responsible for:
- giving your apprentice their contract of employment
- paying your apprentice’s wage
- signing an apprenticeship agreement
Pay for apprentices
You must pay apprentices at least the National Minimum Wage.
There’s different rates of pay for apprentices depending on their age and what year of their apprenticeship they’ve completed.
The contract of employment should make it clear what wage you’ll pay your apprentice and for what hours.
Additional apprenticeship funding
16-18 year olds
Employers who recruit a 16 to 18 year old apprentice get a payment of £1000. Similarly, if they recruit a 19 to 24 year old who has an Education, Health & Care plan they will also get £1000.
Apprentices in care or care leavers
Training and study
You must pay your apprentice for time spent training or studying for their apprenticeship.
Apprentices must get time off during their working week for apprenticeship training.
The training can take place:
- as day release at Mode premises
- at their place of work when do you off the job training
- seminars or skills events
If your apprentice is also studying for English or maths qualifications required by their apprenticeship, they are entitled to paid study time during their normal working hours.
You must offer apprentices the same conditions as other employees working at similar grades or in similar roles. This includes:
- paid holidays
- sick pay
- any benefits you offer such as childcare voucher schemes
- any support you offer such as coaching or mentoring
Apprenticeship Service Account
All employers large and small who want to employ apprentices will need to create or sign in to an apprenticeship account.
Your account will enable you to get funding to pay for apprenticeship training and assessment costs.
You’ll use your account to:
- Get apprenticeship funding
- Find and save apprenticeships
- Find, save and manage training providers
- Recruit apprentices
- Manage apprenticeships
Mode recruitment team will support you to set up your account, reserve apprenticeship places and claim your incentive payments.
Call 015 709 4640 to speak with one of the team or e mail email@example.com