In 2017 the Education & Skills Funding Agency made changes to the way that apprenticeship funding works for employers, so we’ve put together a helpful guide on the difference between levy paying and co-Investment apprenticeships.
Levy Paying Apprenticeships
If your pay bill is over £3 million, the following will apply to your apprenticeship funding:
- 0.5% of your payroll is contributed to HMRC
- A £15k allowance is returned per annum
- 10% is returned per £1 over the initial £3 million
- You will have a 2 year time limit to spend the allowance
Co-Investments Apprenticeships
If your pay bill is less than £3 million, the following will apply to your apprenticeship funding:
- 100% apprenticeship funding for ages 16-18*
- 95% apprenticeship funding for ages 19+
- 5% funding contribution from the employer, with payment plans available*
*depending on the size of your business
Apprenticeships
Regardless of whether you are a levy paying or co-investment apprenticeship provider, the below will apply:
- Contracted hours can be flexible
- £3.90 national minimum wage for apprentices*
- £1,000.00 grant is provided per apprentice aged 16-18 (paid in two instalments)
- No NIC payments for apprentices aged under 25
*correct as of December 2019
(‘Pay bill’ is defined as total employee earnings subject to class 1 secondary National Insurance contributions.)
For more information on apprenticeship funding, get in touch with our friendly, experienced Employer Services team.
