There are two types of organisational groups you can belong to; Levy and Non-levy.
If you are an organisation with a wage bill that exceeds £3 million pounds then you will be funded as a Levy payer. If you have a wage bill lower than that you will be funded as a non-Levy Employer.
If you are a Levy paying company then 0.5% of any wage bill over £3 million pounds will be placed like a tax into a new Digital Account that your company can use to pay for apprenticeship course fees. You can manage your Apprenticeship funds using this account. You must register for your Digital Account. The Levy will be applied via HMRC.
You can choose an apprenticeship provider such as ATT listed in the government approved provider list at https://findapprenticeshiptraining.sfa.bis.gov.uk/
You then negotiate the cost of training depending on the type of Apprenticeship you require and the funding band it falls within. You then sign a contract with the provider to set the terms of agreement.
- Funding is no longer set by age however there are incentive payments for certain groups
- Funds in your digital wallet will expire after 24 months if you don’t use them.
- These changes only apply to apprentices starting after May 1st, 2017
The Non-Levy Payer
While Non-Levy employers do not currently use the digital wallet system to pay for training this will change in 2018 when all employers must be registered to use this system at: https://www.gov.uk/guidance/manage-apprenticeship-funds
- Non-Levy paying employers have the same funding bands as Levy employers
- A Non-Levy employer who has more than 50 staff must contribute 5% to the cost of the apprenticeship training.
- A Non-Levy employer who has less than 50 staff who takes on a 16-18-year-old Apprentice or 19-24-year-old with an EHC Plan does not contribute anything to the cost of training.
- Incentive payments for Non-Levy paying employers are the same
You will be entitled to an incentive payment of £1000 from your training provider if you hire a 16-18-year-old Apprentice or a 19+ Apprentice with an Education, Health and Care Plan (EHC). This is paid in two instalments of £500 at month 3 and then month 12.
Other incentive payments also apply please contact us to find out more.