Apprenticeship Fees for Employers
All current Apprenticeship Standards have been allocated to one of 15 funding bands, which identify the level of government funding available for that particular standard. Some employers may need to make a financial contribution to the cost of training any apprentices taken on, and this will depend on the apprentice being taken on and the size of your business. Only apprentices whose workplace and main place of employment (50% or more) is in England will be eligible for funding purposes.
For full details of the associated fees and funding bands for Standards, please visit the government's website at:-
For Small Employers
You are a small employer if you employ less than 50 people.
If you recruit an apprentice who is 18 or under at the start of their apprenticeship, or an apprentice who is aged 19 to 24 who has previously been in care or who has a Local Authority Education, Health & Care Plan (EHCP) then you will not have to pay anything towards the cost of apprenticeship training.
Furthermore, you will receive £1,000 from the government to help towards your additional costs in supporting that apprentice, paid in equal instalments after 3 months and 12 months.
If you recruit an apprentice who is 19 years of age or over at the start of their apprenticeship, and who is not a care leaver or subject to an EHCP, then you will be required to pay 10% of the full cost of the training, as defined by the relevant funding band that the apprenticeship standard has been allocated to. The government will cover the remaining 90% of the training costs.
For Medium Sized Employers
You are a medium sized employer if you employ 50 or more people and your total annual wage bill is less that £3m.
You will be required to pay 10% of the full cost of the training for the apprentice, regardless of their age, and as defined by the relevant funding band that the apprenticeship standard has been allocated to. The government will cover the remaining 90% of the training costs.
However, if you recruit an apprentice who is 18 or under at the start of their apprenticeship, or an apprentice who is aged 19 to 24 who has previously been in care or who has a Local Authority Education, Health & Care Plan (ECHP) then you will receive £1,000 from the government to help towards your additional costs in supporting that apprentice, paid in equal instalments after 3 months and 12 months. This £1,000 can be used to offset your initial 10% contribution.
For Large Employers
You are a large employer if your annual wage bill is greater than £3m.
As a large employer you will pay the apprenticeship levy, regardless of whether or not you take on any apprentices. The levy is calculated as 0.5% of that part of your annual wage bill that is over £3m. Your annual wage bill for levy purposes is calculated based only on those employees with an English home postcode. The levy is paid through the PAYE system and the monies are deposited into an on-line digital account known as the Digital Apprenticeship Service (DAS), and can be used to pay for some or all of the costs of training.
As a large employer, you will be required to pay 100% of the cost of training for the apprentice, regardless of their age, and as defined by the relevant funding band that the apprenticeship standard has been allocated to.
However, if you recruit an apprentice who is 18 or under at the start of their apprenticeship, or an apprentice who is aged 19 to 24 who has previously been in care or who has a Local Authority Education, Health & Care Plan (EHCP) then you will receive £1,000 from the government to help towards your additional costs in supporting that apprentice, paid in equal instalments after 3 months and 12 months. This £1,000 can be used to offset your initial 100% contribution.
To find out the value of your financial contribution, if any, for your preferred Apprenticeship Standard, please speak to your allocated college assessor or get in touch with our Apprentice Support Team here at the College on 0800 032 1986 (option 3) or by e-mail: busdev@hlcollege.ac.uk