We can help you understand if your business is eligible for funding towards training costs. Read more below, or get in touch with our Business Training Solutions Team who can help you every step of the way.

The Apprenticeship Levy

In April 2017, the government launched its Apprenticeship Levy. The Levy is a ‘payroll tax’ designed to support the government’s commitment to deliver 3 million apprenticeships by 2020.

Regardless of the size of your business, Walsall College is perfectly placed to provide you with up-to-date advice on how the Levy impacts your business and if you need to contribute.

Find out which category you fall into and what contribution you might need to make:

Payroll bill Over £3m Below 33m, above 50 employees Below £3m, under 50 employess
Your business Is a Levy payer is 'Co-funded' for Apprenticeships Training Is fully funded for Apprenticeship Training of 16-18 yr olds Or/And 19-24 yr olds care leavers, or 19-24 yr old with an education and healthcare plan is 'Co-funded' for Apprenticeship Training of people 19+
What you pay 0.5% of total payroll bill 5% of the cost of training You do not need to pay for Apprenticeship Training 5% of the cost of training

If your payroll bill exceeds £3m, your business is classed as a Levy payer and you will be required to contribute. The Levy is charged at 0.5% of your total pay bill and is deducted from your PAYE.

The government is providing an Apprenticeship Levy allowance of £15,000 for employers who are not connected to another company or charity. Connected companies or charities will have £15,000 allowance to share between them.

Example: An employer with an annual pay bill of £5 million:

Levy sum: 0.5% x £5,000,000 = £25,000

Allowance: £25,000 – £15,000 = £10,000 annual payment

One of the benefits of the scheme is that it places control of Apprenticeship Funding into the hands of the employer. This allows you to invest in your current apprentices, take on more and upskill existing staff to help secure the future of your organisation.

As long as you are offering recognised Apprenticeship Training, typically bought in from a college or independent training provider, you can take advantage of the allowance.

If you have a payroll bill of less than £3m and over 50 employees, you will be co-funded for Apprenticeship Training. The government will pay 90% of the cost of Apprenticeship Training, whilst you will need to pay the remaining 10% to the training provider. The training provider will then request the remaining 90% from the Ggvernment.

As well as taking on new apprentices, this funding can also be put towards training existing staff, if the Apprenticeship Training is relevant to their job and will assist in their career development.

Non-Levy paying companies with less than 50 employees do not need to make a contribution towards the cost of training and assessment of any apprentices aged 16-18, as the government will pay 100% of the costs. This also applies to apprentices aged 19-24 who have been in care or have a Local Authority Education, Health and Care plan.

For training that applies to anyone that is aged 19 or over, you will be required to pay 10% of the cost of training, whilst the government will pay the remaining 90%.

For more information about the Apprenticeship Levy and how it might affect your business, visit The Apprenticeship Levy and You

Walsall College is perfectly positioned to help you understand how the Apprenticeship Levy affects training funding for new or existing employees. Our expertise and support will guide you effortlessly through the new system, whilst providing high quality accredited apprenticeship training for your employees.

For more information, complete the below form or call Sue Fitzgerald, our dedicated Apprenticeship Levy Manager on 01922 663530.

Additional Financial support

There are a number of government grants available to support businesses with training apprentices. At Walsall College, we can help those eligible to access these grants, obtain funding and deliver expert training.

£1,000 incentive payment

Employers are entitled to an additional £1,000 incentive payment for supporting a 16-18 year old partaking in an apprenticeship framework or standard, as well as a 19-24 year old formerly in care or who has an Education and Health Care Plan.
Evidence of an original signed declaration by the apprentice to confirm that they are a care leaver or evidence of an EHC plan is required in order to claim this incentive.
For more information call our Business Training Solutions team on 01922 651129 or email businesstrainingsolutions@walsallcollege.ac.uk

Walsall Works

A substantial payment of up to £6,000 to recruit a young person as an apprentice is available for employers through Walsall Works – a multi-million pound investment by Walsall Council, who have a growing focus on sustainable employment and growth amongst Walsall-based businesses.
Employers can receive the following incentive:

  • £3,000 maximum for employers taking on a young person aged 16 or 17 at a rate of £4.20/hour
  • £4,500 maximum for employers taking on a young person aged between 18 and 20 at a rate of £5.90/hour
  • £6,000 maximum for employers taking on a young person aged between 21 and 24 at a rate of £7.38/hour

For further information about the Walsall Works investment, please call 01922 654353 or email walsallworks@walsall.gov.uk

Have any questions?
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