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Funding2021-01-17T15:04:59+00:00

The government is bringing out new funding and schemes every month, so make sure to return to this page for any updates, or sign up to our newsletter.

We know that you don’t have time to keep track of every little detail, update and deadline on apprenticeship funding. Due to the government perceiving apprenticeships as a valuable solution to the economic crisis emerging from the COVID-19 pandemic, new grants or schemes crop up every week. Whether you are looking to take on an apprentice or provide training, we will keep track of what’s going on so you don’t have to.

Not only will this page keep a note on all the new emerging funding, but it will also research the eligibility criteria. As such, you can sleep easy knowing you are no longer missing out on any potential goldmines.

Please note, the current guidance on this page is only appropriate for England.

  • New Grants

    Recently, the government announced they will now be offering additional payments to every employer who hires a new apprentice between 1st August 2020 and 31st January 2021.

    The payments include £2,000 to any employer in England for every new apprentice that they hire under the age of 25, and £1,500 for every new apprentice aged 25 or over. These are in addition to the existing scheme which provides £1,000 for every 16-18 year old, or 19-24 year old with an Education, Health and Care plan, hired as a new apprentice by an employer.

    There is no cap on the number of payments you can receive for hiring new apprentices.

  • Training

    Government funding for covering the costs of training apprentices are different for different size companies.

    If your annual pay bill is over £3 million you must pay the Apprenticeship Levy, and you will use that to fund the training costs of your apprenticeships. If you are one of these employers, go to our guide on the Apprenticeship Levy to find out about the provided funding and how the Levy works.

    If you are not a levy payer, there are two different ways to fund your apprenticeship training. This is either by registering to and utilising the apprenticeship service, or through a funding contract held by your selected training provider.

    After agreeing an amount between yourself and the training provider, the government will cover 95% of the training costs, up to the allocated maximum funding for that apprenticeship. If the agreed sum with your training provider exceeds the funding band maximum, you will have to cover all of the training costs above that limit.

    Any costs you have to pay for training will be taken in installments over the course of the apprenticeship by your training provider, so there is no big charge and all the hassle is done for you.

  • National Insurance Savings

    For apprentices under the age of 25, all employers are exempt from paying employer class 1 National Insurance contributions on earnings below £827 per week, or £43,000 per year.

    For example, if you had a 22 year old apprentice being paid the National Minimum Wage, you would save £1,500 in National Insurance contributions over 12 months. If you were paying that same apprentice the Real Living Wage, that saving would increase to £2,000 over the same period.

  • Traineeships

    The government has recently announced that it is now funding £1,000 for every trainee taken on by any employer in England.

    They published details on how to claim this funding on 14th October 2020. To find out more, read our dedicated page about the update on traineeship funding.

  • Eligibility for Apprenticeship Funding

    In order to receive funding, your apprenticeship must follow appropriate the outlined Apprenticeship Standards. To search for your Apprenticeship Standard, click here.

    Each Standard has guidelines specific to it, but some of the general guidelines include:

    1. Provide a lawful wage
    2. Ensure your apprentice has the required Level 2 English, maths and ICT skills, if needed
    3. Ensure that at least 20% of the apprentices work hours are made up of off-the-job training
    4. Only take on an individual as an apprentice if they require enough training to take 12 months of at least 30 hours a week to be capable for the job role
    5. Do not charge the apprentice for any of the hiring, training or assessment costs
Are there instances where an apprenticeship is solely funded by the government?2020-11-06T11:45:06+00:00

Yes. If your company employs less than 50 members of staff, the government will cover 100% of the training costs towards an apprentice that is aged 16-18, or aged 19-24 who have previously been in care or who have a Local Authority Education, Health and Care plan. However, as with all government investment into apprenticeship training, they will only cover the costs up to the funding band maximum for that apprenticeship standard.

For those who are not eligible to be fully funded by the government, there is the option for a Levy Transfer. This is where companies who pay the Apprenticeship Levy have an excess that they won’t be able to spend before the 24 month limit runs out, in which they will lose the money in their Levy accounts. Rather than lose their Levy, they can transfer it to another company who is taking on an apprentice.

The only downside to this is it is difficult to find matches for the transferal. Luckily, Employing an Apprentice is currently in the process of developing a nationwide Levy Matching Service. To find out when this service has gone live, sign up to our newsletter below.

What is the best way to keep up with changes to funding?2020-11-05T16:56:42+00:00

There are a number of different ways in which people find out about changes to funding: government announcements; updates to the government website; and conversations with members of the civil service. These can be incredibly confusing to keep track off, especially when a lot of the time one arm of government is saying something different to another. This is often the result of schemes not working out in practice, and so they will change as the government rolls them out.

That is why we endeavour to sift through all the confusion and track down the truth. By coming back to this page, you will find out all the updates on a range of different schemes, grants and funding. To get notified right away about anything new follow us on LinkedIn or Twitter and sign up to our newsletter below.

How many funding bands are there?2020-11-05T16:43:40+00:00

There are lots of different funding bands for apprenticeships. Even within a particular industry you can have the full range of funding bands. The maximum amount of funding you can receive for a single apprenticeship is £27,000.

However, the funding bands are relative to the usual costs for that training. That means that whichever band the apprenticeship you want to choose has is unlikely to effect the end costs of your apprenticeship. The only time it is important is if you decide to purchase training for an amount above the funding band.

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