MORE THAN JUST AN APPRENTICESHIP PROVIDER!
The government announced in the 2015 Summer Budget its new initiative to help fund 3 million apprenticeships by 2020. A part of that initiative was the Apprenticeship Levy which came into effect in April 2017 ‒ this has changed the way apprenticeships are funded.
0 - 49 employees
If you are a small employer with under 50 staff, the government will pay all the training costs for a 16 - 18 year old apprentice.
Similar to 16-18 year olds, the government will make a similar payment if you recruit 19 – 24 year olds who have an Education and Healthcare Plan provided by the local authority or those who have been in the care of the local authority.
All employers will receive an incentive payment of £1000 for employing a 16-18 year old apprentice.
16-18 year olds
The government is looking to make extra payments to help meet the additional costs to support the employment of young apprentices. If this happens, it will be paid to you through your chosen apprenticeship provider.
Similar to 16 - 18 year olds, the government is considering a similar payment if you recruit 19 - 24 year olds who have an Education and Healthcare Plan provided by the local authority or those who have been in the care of the local authority.
English and Maths
If your apprentice doesn’t have the minimum standards required in maths and English they will need to complete a maths or English course. The government will pay the providers directly to cover the cost of this training.
National Insurance breaks for employers of apprentices under 25
From April 2016 employers of apprentices under 25 will no longer be required to pay secondary class 1 National Insurance Contributions (NIC) on earnings up to the upper earnings limit, which is currently £43,000, for those employees. This is a saving of 13.8% on everything an apprentice earns over £8,000 per year up to the upper earnings limit.