As a non-Levy payer, you will have an annual pay bill of under £3 million
Non-levy paying employers will share the cost of training and assessing their apprentices with government - this is called ‘co-investment’.
From May 2017, non-Levy paying employer will pay 10% towards to the cost of apprenticeship training with the government paying the rest (90%).
Manage your apprenticeship training and assessment
If you do not pay the levy, you won’t be able to use the apprenticeship service to pay for apprenticeship training and assessment until at least mid-2019, unless you are receiving a transfer of funds from a levy paying employer.
Instead, you’ll need to agree a payment schedule with us and pay directly for the training.
There are 2 different types of apprenticeships to choose from:
- apprenticeship standards - each standard covers a specific occupation and sets out the core skills, knowledge and behaviours an apprentice will need
- apprenticeship frameworks - a series of work-related vocational and professional qualifications, with workplace- and classroom-based training
Funding bands and co-investment
Every individual Apprenticeship framework and standard will be allocated to a funding band. The upper limit of the funding band will cap the maximum price that government will ‘co-invest’ towards.
The government will fund 90% of the agreed price for training and assessment, and you as the employer will pay 10%. You will be able to agree a payment schedule with us and spread your payments over the lifetime of the Apprenticeship. An example of how this might work is provided below:
- Employer chooses Apprenticeship in band 9 with a maximum price of £9,000
- Employer negotiates a price of £8,500 with their provider
- Government co-invests 90% = £7650
- Employer co-invests remaining 10%= £850
- Employer and provider agree to spread this over 10 instalments of £85
Small employer incentive
The government recognised that smaller employers have historically played a very important role in helping young (16-18 year old) and disadvantaged people into the workforce - they continue to support small employers to take on younger apprentices so, for employers with fewer than 50 workers the government will pay 100% of the Apprenticeship training costs for these individuals. In addition to this, they are extending this offer to small employers who take on a 19 to 24 year old apprentice who was formerly in care or has a Local Authority Education, Health and Care plan.
Additional payments
As a non-Levy-paying employer, who employs a young (16-18 year old) person, the government will pay you an additional £1,000 over two equal payments after 3 months and 12 months. Initially, the payment for the employer would be made via us. Over time, they intend to move to a system where you receive this payment directly from the government.