Funding and Incentives

Employers are entitled to £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 submitting an enquiry if you would like to discuss hiring an apprentice.

The Employer Support Fund for T-Levels is a program aimed at providing financial assistance and support to employers who engage with the T-Level programme.

By engaging with the fund, employers can contribute to the development and delivery of high-quality technical education, ensuring that students acquire the skills and knowledge required to thrive in the workplace.

There is no limit on the number of students an employer can host on an industry placement or make claims for legitimate costs for, however employers can only claim for costs up to a maximum of £25,000 across all placements they are hosting. Legitimate costs could include: administrative costs, training costs and tangible costs such as equipment, insurance and software licensing.

Employers who hire a Path 2 Apprenticeships candidate as an apprentice will receive:

• £2,000 funding per apprentice: This funding can be used to cover salary costs (to meet or exceed the National Minimum Wage), support mentoring efforts, or assist apprentices with work-related expenses like clothing or travel.
• Funding is available only until 31st March 2025.

The apprenticeship levy applies to large employers in the UK with an annual payroll of more than £3 million, including private, public sector, and charitable organisations.

How does the levy work?

• The levy is set at 0.5% of an employer's total annual pay bill.
• Employers pay the levy monthly through their Employee Payment Summary.
• Levy funds can be used to cover apprenticeship training costs.
• Any unused levy funds contribute to apprenticeship training for smaller employers.

For Employers with a Payroll Over £3 Million

• These employers are Levy payers.
• They contribute 0.5% of their annual payroll bill above £3 million to fund apprenticeships.

For Employers with a Payroll Below £3 Million (For new starts from April 1, 2024)

• Fully funded apprenticeship training is available for:
  • 16 to 21-year-olds.
  • 22 to 24-year-olds with an Education, Health, and Care Plan (EHCP), if their employer has fewer than 50 employees.
  • Employers do not need to pay for apprenticeship training for these learners.
• For apprentices aged 22 and over (who do not meet the above criteria), apprenticeship training is co-funded, meaning employers pay 5% of the cost, while the government covers the remaining 95%.

What if an employer's levy funds don’t cover the cost of training?

If a levy-paying employer's funds are insufficient, the government will cover 95% of the additional costs, with the employer contributing the remaining 5%.

This funding model ensures affordable access to apprenticeship training, supporting businesses of all sizes in developing a skilled workforce.

Workwise offers eligible newly employed applicants a discount off the full cost price on selected travel passes across the West Midlands network for the first 3 months of a new job. This includes Apprenticeships.

Tickets available over bus, train and tram. For more information about the scheme, how much discount you can get, eligibility and how to apply, visit Workwise.