Information for Employers

Apprenticeships can support your business to grow talent and develop a skilled workforce.

Offering an apprenticeship can:

Introduce fresh talent and ideas to your business by recruiting new staff or upskilling existing members
Align training to your business needs
Boost staff loyalty and motivation

Studies show that because of apprenticeships:

80% of employers report higher staff retention
92% of employers see a boost in workforce motivation and satisfaction*

*For more information visit here.

If you would like to speak to our Apprenticeship Team about how we can support you to find an apprentice or upskill current staff please contact us.

CLICK HERE TO CONTACT OUR FRIENDLY APPRENTICESHIP TEAM

Apprentices receive a wage. The National Minimum Wage for apprentices is £7.55 per hour. However, as skills develop, many employers may choose to increase wages. It is important to remember that there is also an investment and cost linked to the supervision, support and mentoring that you will need to put in place to support the apprentice.

Employers must comply with National Minimum Wage legislation which can be found on the gov.uk website. You will need to ensure that you pay your apprentices for the time they are at work learning on the job and for off-the-job training, which will include attendance at college. Apprentices aged 19 and over who have spent a year on their apprenticeship must be paid the National Minimum Wage rate appropriate to their age.

In November 2015, an Apprenticeship Levy was announced by Government. This is a mandatory tax for all employers with an annual wage bill that exceeds £3 million.

The Levy came into effect from 1^st May 2017. The rate for the levy will be set at 0.5% of an employer’s wage bill where it exceeds £3 million and will be collected via PAYE. The Levy can be used to develop new and existing staff as long as the training meets an approved apprenticeship framework or standard and the individual meets the apprentice eligibility criteria.

If you are a levy paying organisation, you will need to register for a digital account which can be accessed from the gov.uk website.

If your wage bill is below £3 million per annum you will be required to pay a 5% contribution towards the cost of the apprenticeship. The Government will pay the remaining 95%.

There are some exceptions to this where the government recognises employers may require additional support. If you are a non-levy paying organisation with 49 or fewer staff and are recruiting an apprentice aged 16-18 or are looking to appoint an apprentice aged 19-24 with an education and health care plan, including care leavers you will not be required to contribute to the cost of apprenticeship training.

There is also a £1,000 incentive available to support employers when recruiting a 16-18 year old or 19-24 year olds who have an education and health care plan or are a care leaver. These incentives are generated in 2 instalments; one after 3 months and the other after 12 months of the apprenticeship start date.

The table below shows the funding arrangements for the age of apprentice being recruited to the size of organisation and levy paying status.

	Levy Payer Wage Eligibility: Wage bill of £3 million or more per annum.	Non-Levy Payer Eligibility: Small and Medium
Digital Account (All Ages)	Levy Contribution: 0.5% of the wage bill. Payroll over £3 million Government Top-Up: Additional 10% top-up from the government. Expiration of Funds: Funds expire after 24 months. Transfer Option: Up to 25% of funds can be transferred to other employers
16-21 22-24 care leaver or with EHCP		Fully Funded Apprenticeship Government pays 100%
16-18 19-24 care leaver or with EHCP	Incentive of £1,000 per apprentice paid in two instalments of £500 at 3 months and 12 months.	Incentive of £1,000 per apprentice paid in two instalments of £500 at 3 months and 12 months.
22-24 (excluding 19-24 care leaver or with EHCP)	Funded by Digital Account	Government 95% employer pays 5% (provider must evidence receipt of 5% contribution before receiving payments from government
25+	Funded by Digital Account	Government 95% employer pays 5% (provider must evidence receipt of 5% contribution before receiving payments from government