Apprenticeships Funding and Guidance

Why SR Apprenticeships/training?

As a training partner SR Education will without charge:
• Complete a consultation process, identifying the right apprenticeship(s) for your business requirements
• Support any recruitment needs, advertising and supporting the recruitment process
• Develop a training plan which reflects the apprentice’s and your needs
• Review and test the progress of an apprentice and provide feedback
• Provide training to support the apprentice with off-the-job learning and the knowledge elements of the programme

Funding and Eligibility

To qualify for a funded apprenticeship, apprentices must:

  • Be a citizen of the UK (or EEA) or have the right of abode in the UK (and have ordinarily resided in the EEA) for a minimum of 3 years on the first day of learning.
  • Be working within a job role relevant to that of the qualification they wish to undertake
  • Be working a minimum of 30 hours
  • Be paid a minimum of the apprenticeship minimum wage
  • Must be working towards achieving an approved apprenticeship standard or apprenticeship framework
  • Training must last at least 12 months, or advised by the duration of the apprenticeship qualification
  • The apprentice must spend 20% of their time off-the-job training

Funding – England:
September 2016 – April 2017

Apprenticeship training costs are fully or part funded by the government for Apprenticeship Frameworks, depending on the age of the apprentice. 16-18 years olds are fully government funded 19 years and over are part government funded, with the requirement of an employer contribution

May 2017 onwards

Annual pay bill of more than £3 million – Apprenticeship Levy:
Employers with an annual pay bill of more than £3 million will need to spend 0.5% of their total pay bill on the apprenticeship levy. Reported and paid to HMRC via the PAYE process. ‘Levy allowance’ of £15,000 per year. This means that the total amount you need to spend is 0.5% of your pay bill, minus £15,000.

Annual pay bill of less than £3 million – Co-investment arrangement:
90% government funded, 10% employer funded (100% government contribution for small employers who take on an apprentice aged 16 to 18 years old, 19 to 24 year old care leavers or 19 to 24 year olds with an education and health care plan) 16 to 18 year old incentive payment of £1000 for employers who take on 16-18 year old apprentices (or 19-24 year olds who were in care or who have an education and health care plan)

Levy Guidance

  • Employers will have an allowance of £15,000 to offset against their levy
  • Any organisation paying in to the levy will need to utilise apprenticeships for existing employees or new recruits to make use of their levy
  • Levy is paid monthly via PAYE
  • Government will provide a 10% top up on a monthly basis
  • Levy can only be used to fund apprenticeship training and assessment with an approved training provider and assessment provider
  • Funds expire 24 months after they enter the levy digital account, if you do not use it you will lose it

Download the Apprenticeship Levy guidance document