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RECRUITING AN APPRENTICE THIS SUMMER? – See How the Changes Will Affect You

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Are you a levy payer?
If your organisation has a paybill of £3 million or more you will be a levy payer. 0.5% of your pay bill will, via HMRC, be paid into a levy pot which you can then spend on apprenticeship training in your organisation. Please note: There is a £15,000 allowance before the levy is applied.
Via the Digital Apprenticeship Service you will be able to view your levy funds and search for and select your preferred supplier.

Non-levy payers
If your salary bill is less than £3 million, you will be a non-levy paying employer.
You will be expected to contribute 10% of the maximum funding band for your chosen qualification in cash terms. Please note this is mandatory except for the exemption categories as detailed below. The remaining 90% will be contributed by Education and Skills Funding Agency and will be paid directly to your chosen provider pending an agreement being agreed by both parties (employer and provider).
*Please note – the 10% payment has to be made to your provider before the remaining 90% funding is released by the Education and Skills Funding Agency. (Financial transactions are mandatory and have to be evidenced as required by the ESFA and can be discussed and arranged individually with your provider.)
Like levy paying companies, non- levy payers will also be able to use the Digital Apprenticeship Service to search for approved providers in your area, select your provider of choice and agree both financial and delivery terms.

Exemptions
There is no cash contribution required for learners 16-18yrs for employers with less than 50 employees. This age group will continue to be fully funded by Education and Skills Funding Agency and an incentive payment of £1000 is payable to both the provider and the employer (£1000 payment each).
The SFA will also contribute 100% funding for 19-24yr old care leavers or 19-24yr olds with an education or health care plan.

All changes relate to both new starts and existing staff

Further information for both levy and non-levy paying employers can be found using the following links:

https://www.gov.uk/take-on-an-apprentice

https://www.gov.uk/guidance/pay-apprenticeship-levy

Should you have any queries relating to the above or would like to discuss recruiting an apprentice please do not hesitate to contact us on: – 01482 611896.