Non Levy Funding

Non-Levy apprenticeships

The 98% of businesses that don’t fall into the category of levy paying companies for apprenticeship training can still access funds to support their apprenticeship training requirements. These are companies with an annual wage bill of less than £3 million.

Currently the government will fund 90% of the agreed price for the training and the employer will pay the remaining 10% to the training provider of choice.

An example of how this works can be shown below:

  • Employer chooses the Improvement Practitioner (Lean & Six Sigma Green Belt) standard in band 8 at a cost of £6,000.00
  • Employer negotiates a price of £5,750.00 with the provider
  • The government co-invests £5,175.00 (90%)
  • The employer co-invests the remaining 10% which is £575.00. This must be in cash and not in kind.
  • The employer and training provider agree the payback times, usually determined by the length of the training.
  • A percentage is agreed and put aside on the Digital Apprenticeship System for the End Point Assessment.
  • The End Point Assessment value is negotiated with the Employer

There are extra incentives for non-levy paying organisations who take on 16-18 year old apprentices. They will receive an additional £1000.00 payment in two equal instalments timed at 3 months and 12 months. This will be sent by the training provider.

For companies with less than 50 employees the government will pay 100% of the apprenticeship training cost if the apprentices are between 16 and 18 years old.

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