Page title

Non-levy Paying Employers

Employers that don’t pay the levy

You will not pay the levy if your pay bill is below £3m per annum.

For apprenticeships your funding will come from the government via your training provider. There will be certain conditions which will apply to determine your eligibility.

When the new funding system begins in May 2017, you can choose the training you would like your apprentices to receive and this could be a standard or framework. Your apprentices will be funded through an approved training provider using the registers available on the apprenticeship service. Help with this is available from the National Apprenticeship Service.

The government has stipulated that employers make a 10% contribution to the cost of this training and government will pay the remaining 90%, up to the maximum amount of government funding available for that apprenticeship.

There are certain conditions that determine if you are eligible to receive full funding for your apprentice.

If your apprentice is between 16 – 18 years old and your company has less than 50 employees you should be eligible for full government funding. We will let you know if you are eligible.

You could also be entitled to an incentive payment of £1,000. We will let you know if you could be eligible for this.

The 10% contribution is paid directly to the provider preferably in one instalment but payment plan options are available on request. As both you and the government make a payment, we call this ‘co-investment’. This co-investment is mandatory and the government will audit this payment to ensure it is being paid.

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.

How much does apprenticeship training cost?

It varies and is dependent on the level of standard or framework. All this information can be provided by us or is available from any training provider and also from the government website

Can I use multiple training providers or only one?

Yes, you can use different training providers, however you cannot use more than one for each individual apprentice.

Are there any age restrictions for the apprentice to be eligible for the new funding?

No, you can use funds to train an apprentice of any age (starting at 16 or 15 if they start their apprenticeship after the last Friday of June of the academic year in which they have their 16th birthday).

However, it is best practice to use this to develop new skills be it existing staff (in a new/changed role within the company) or employing new staff.

Can I claim funding to offer apprenticeships to existing staff?

Existing staff will be eligible as long as the apprenticeship is relevant to their role and the most appropriate way of progressing/developing the learners’ career as a result i.e. upon completing the apprenticeship the member of staff will be promoted, given more responsibility or moved into a more senior role. You will have to co-invest unless your apprentice is between 16 – 18 years old and meets the qualifying criteria.

Is the funding available for apprenticeships UK-wide?

No, England only. In Northern Ireland, Scotland and Wales apprenticeships have their own funding arrangements.

What is the end point assessment (EPA)?

The introduction of independent end-point assessment (EPA) is one of the biggest changes in the Government’s Apprenticeship Reforms. This assessment only applies to standards and will not be used for frameworks.

End-point assessment is a new way of assuring quality in the apprenticeship system. It replaces the existing model of continuous assessment resulting in qualifications.

Once an apprentice has completed their apprenticeship, they will be ‘signed off’ by their employer as ready for end-point assessment of their knowledge and practical capabilities. In most cases, the assessment will be graded and must show the apprentice is fully competent and productive in the occupation.

The registered assessment organisation and the assessor must be independent of, and separate from, the training provided by the provider and employer.