How can an Apprentice benefit your business?
Apprenticeships have become the training programme of choice for many employers across a wide range of different industries.
(Equivalent to five GCSEs Grade A*-C)
(Equivalent to two A Levels)
(Equivalent to a foundation degree or HND)
What are the benefits as an employer?
Employers tell us that integrating apprenticeships into their organisation brings a range of additional benefits to the business:
- A loyal workforce that appreciates the investment in their development
- Reduced training costs
- Skills gaps addressed
- Improved productivity
- Reduced recruitment costs
- A significant return on investment
Yorkshire Training Partnership can advise on the funding currently available to employers looking to take on apprentices. Our team have experience and expertise in ensuring that your investment in the apprenticeship programme is as cost effective as it can possibly be. We can also advise on the latest apprenticeship reforms that will affect funding over the next few years.
Apprentices complete qualifications relevant to their role and the industry and receive regular visits from the team to make sure that they are developing at the right pace and performing at a level that is meeting your expectations.
The Apprenticeship Levy and Costs
As an employer with an annual pay bill of more than £3 million, you pay 0.5% of this towards the apprenticeship levy through PAYE each month.
You have an allowance of £15,000, which reduces the amount you need to pay towards the levy.
As well as the allowance, the government tops up your levy payments by 10% in your digital apprenticeship service account. So, for every £1 you pay towards the levy, this will become £1.10.
You’ll use your levy funds through your government apprenticeship service account. This is where you’ll receive your 10% top up and make payments for training. Companies will lose their funds if they don’t spend it within 24 months.
If you are in a group of companies paying the levy together, your group can collect funds in a single account. The government currently allows levy-paying employers to transfer up to 25% of funds entering their apprenticeship service account to other employers. They can transfer funds to any employers or apprenticeship training agency.
If your annual pay bill is less than £3 million and you’d like to benefit from apprenticeships in your organisation, you’ll fund this through co-investment. This is where you’ll contribute 10% to the costs of training and assessing your apprentices, and the government will fund the remaining 90%.
For smaller companies with fewer than 50 employees, the government will pay all the costs for new apprentices aged 16 to 18 and those aged 19 to 24 who are leaving care or have a Local Authority and Healthcare plan.
When you’d like to benefit from more apprenticeships than your account will currently fund, you’ll move onto ‘co-investment’. This is where the government funds 90% of your apprenticeship training and assessment costs, and you pay the other 10%.
Employers who take on an apprentice aged 16-18, or an apprentice aged 19-24 who has previously been in care or who has a Local Authority Education, Health and Care plan, will receive £1000 to help with any additional training and support costs.
The £1000 will be paid to the employer in two equal instalments at month 3 and month 12 of the apprenticeship.
You can use your levy funds for apprenticeship training and end-point assessments for apprentices who work in England for at least 50% of the time. The levy covers your apprentice’s training and assessment within the scope of the framework or standard they’re following, and not things like wages and expenses. If the costs of training and assessment exceed the funding band maximum, you will need to pay the difference from your own training budget.