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.
£1000 Apprenticeship Incentive
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.
T-Level funding
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.
The Apprenticeship Levy
PLEASE NOTE: The information below is subject to change upon receiving further guidance from the government.
The Department for Education has published draft Apprenticeship funding rules for 2024-25 and a summary of changes. There is an article in FE Week about the proposed changes.
There is also a policy paper on Apprenticeship funding which sets out the policy for apprenticeship funding reforms in England, for new apprentices starting from 1 April 2024.
For new starts from 1 April 2024, where the employer does not pay the apprenticeship levy, the government will fund all of the apprenticeship training costs, up to the funding band maximum, for apprentices who are aged between 16 and 21 years old when they start their apprenticeship training. This removes the need for non-levy paying employers to pay the 5% co-investment cost of training.
From April 2024, the proportion of funds that levy-paying employers can transfer to other businesses, including smaller firms, will increase to 50%.
Current guidance (subject to change)
The levy is designed to put apprenticeship funding in the hands of employers and encourage them to invest in and create apprenticeships.
- Regardless of sector, all employers with a payroll of over £3 million per annum (around 2% of UK businesses) are required to pay the Apprenticeship Levy.
- These businesses are required to pay 0.5% of their paybill to fund the levy.
- Once a business has started contributing to the levy, it will get access to the Apprenticeship Service; an online portal where funds can be used to recruit new talent and training.
- The remaining 98% of UK businesses are still able to take advantage of the levy by working with training providers to create a suitable apprenticeship programme for your business.
- Non-levy paying business will need to contribute 5% towards the cost of the required apprenticeship and the government will pay the remaining 95%.
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
Your Business: Is a Levy Payer
What you pay: 0.5% of total payroll bill
Payroll Bill: Below £3m, above 50 employees
Your Business: is 'Co-funded' for Apprenticeships Training
What you pay: 5% of the cost of training
Payroll Bill: Below £3m, under 50 employees (For starts before 31 March 2024)
Your Business:
- Is fully funded for 16 and 18 years old (or 15 years of age if the apprentice’s 16th birthday is between the last Friday of June and 31 August); or
- 19 and 24 years old and has either an education, health and care (EHC) plan provided by their local authority and / or has been in the care of their local authority
What you pay: You do not need to pay for Apprenticeship Training
Payroll Bill: Below £3m, under 50 employees (For starts before 31 March 2024)
Your Business: is 'Co-funded' for Apprenticeship Training of people 19+
What you pay: 5% of the cost of training
Payroll Bill: Below £3m (For new starts from 1 April 2024)
Your Business:
- Is fully funded for 16 and 21 years old (or 15 years of age if the apprentice’s 16th birthday is between the last Friday of June and 31 August)
- 22 and 24 years old and: - has either an education, health and care (EHC) plan provided by their local authority and / or has been in the care of their local authority; and - their employer has fewer than 50 employees
What you pay: You do not need to pay for Apprenticeship Training
Payroll Bill: Below £3m (For new starts from 1 April 2024)
Your Business: is 'Co-funded' for Apprenticeship Training of people 21+
What you pay: 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.
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 16-21, 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 22 or over, you will be required to pay 5% of the cost of training, whilst the government will pay the remaining 95%.
Discounted Travel Scheme for newly employed people including Apprentices
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.
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 contact us here.
- Wisemore Campus
- Littleton Street West
- Walsall
- WS2 8ES
- 01922 657000