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Apprenticeship Levy

Like all employees, apprentices must still receive a wage. The National Minimum Wage for apprentices is £3.30 per hour. However, as skills develop, many employers tend 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 as set by HMRC. As an employer you must make sure all your Intermediate Level or Advanced Level apprentices are being paid at least £3.30 for all the time they are on their apprenticeships. This includes time working plus the time spend training both on and off the job. This includes time at college. Apprentices aged 19 or over who have already spent a year on their Apprenticeship must be paid at least the full National Minimum Wage (NMW) rate appropriate to their age.

The rate is set to be consistent with current arrangements in parts of the UK. The Low Pay Commission has recommended a rate that is fair to apprentices and does not discourage employers from offering Apprenticeships. The Government has accepted the rate recommended. The rate is a minimum, employers can pay more – and many do so. The NMW rates are reviewed each year by the Low Pay Commission.

Please note – the Department for Business, Energy and Industrial Strategy’s national living and minimum wage rose on 1 April 2017.  From this date, the new national minimum wage for apprentices aged under 19 (or aged 19 or over and in the first year of their apprenticeship) will rise to £3.50.

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  Levy Payer

Wage bill more or equal to £3million per annum

Non-levy payer

With more or equal to 50 employees

Non-levy payer

With less than 50 employees

Digital Account

 

Monthly levy = 0.5% of pay bill of £3m and above

+10% top up from Government

Funds expire after 24 months.

From 2018 up to 10% can be transferred to other employers

(e.g. supply chain)

 

No Digital Account No Digital Account
16-18

 

19-24  care leaver  or with EHCP*

 

Funded by Digital Account

Incentives:

£1,000 per apprentice paid in two £500 instalments, at month 3 and month 12

(Via Provider).

 

Government pays 90%, 

Employer pays 10%

(Provider must evidence receipt of 10% contribution before receiving payments from Government).

Incentives: 

£1,000 per apprentice paid in two £500 instalments, at month 3 and month 12

(Via Provider).

 

Government pays 100%

Incentives:

£1,000 per apprentice paid at month 3 and month 12

(Via Provider).

 

19-24

(excluding 19-24  care leaver  or with EHCP*)

 

Funded by Digital Account

 

Government pays 90%,

Employer pays 10%

(Provider must evidence receipt of 10% contribution before receiving payments from Government).

 

Government pays 90%,

Employer pays 10%

(Provider must evidence receipt of 10% contribution before receiving payments from Government).

 

25+

 

Funded by Digital Account

 

Government pays 90%, 

Employer pays 10% 

(Provider must evidence receipt of 10% contribution before receiving payments from Government).

 

 Government pays 90%, 

Employer pays 10%

(Provider must evidence receipt of 10% contribution before receiving payments from Government).

 

*EHCP= “Education & Health Care Plan”


For more information, contact a member of the Business and Employment Support Team:

T: 01229 844836
E: businesssupport@furness.ac.uk


Channelside
Barrow-In-Furness
Cumbria
LA14 2PJ
Rating Lane
Barrow-In-Furness
Cumbria
LA13 9LE
Contact Us Tel: 01229 825 017
Email: info@furness.ac.uk
Business Support Tel: 01229 844 836
Email: businesssupport@furness.ac.uk
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