We can help take away some of the confusion about what funding and incentives you may be eligible for. From understanding the apprenticeship levy to explaining off the job training. Read more below, or get in touch with our Business Training Solutions Team who can help you every step of the way.

The Government Apprenticeship Incentive

Apprenticeship financial incentives were first introduced by Chancellor Rishi Sunak in August 2020 and currently offer firms £2,000 to take on apprentices aged 16 to 24, while those that employ new apprentices aged 25 and over are paid £1,500. This will end on 31st March.

Any employers who hire a new apprentice between 1 April 2021 and 30 September 2021 will receive £3,000 per new hire, regardless of the apprentice’s age.

The payment is in addition to the £1,000 employers already receive (see below) for hiring new apprentices aged 16-18 and those under 25 with an Education, Health and Care Plan, meaning employers could get up to £4,000. Find out more on the government website.

 

£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 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.

Please get in touch with our Business Training Solutions team by calling 01922 657000 or emailing businesstrainingsolutions@walsallcollege.ac.uk if you would like to discuss hiring an apprentice.

 

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 £3m, 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 95% of the cost of Apprenticeship Training, whilst you will need to pay the remaining 5% to the training provider. The training provider will then request the remaining 95% from the Government.

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.

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

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 5% of the cost of training, whilst the government will pay the remaining 95%.

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

Other funded training provision

Funding Table

Course Type
19-23 Years of Age
24 Years of Age +
Employed Unemployed on active benefits, JSA/ESA WRAG or
Universal Credit or wider offer undertaking skills training
Employed Unemployed on active benefits, JSA/ESA WRAG or
Universal Credit or wider offer undertaking skills training
English & Maths, Adult Basic Skills up to Level 2 FREE FREE FREE FREE
ESOL Listed fee payable FREE Listed fee payable FREE
Progression funding Entry Level/Level 1 excl. S4L without a L2 FREE FREE Listed fee payable FREE
First full level 2 FREE FREE Listed fee payable FREE
Additional full level 2 Listed fee payable FREE Listed fee payable FREE
First full level 3 or above FREE FREE Apply for Advanced Learner Loan or pay listed fee
Additional full level 3 Apply for Advanced Learner Loan or pay listed fee Apply for Advanced Learner Loan or pay listed fee Apply for Advanced Learner Loan or pay listed fee

For more information call our Business Training Solutions team on 01922 657000 or email businesstrainingsolutions@walsallcollege.ac.uk

 

Have any questions?
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  • Walsall
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