For non-levied employers, such as most Primary Care providers, both the employer and the government pay the training provider for apprenticeship training – 5% from the employer and 95% from the Government from April 2019. All apprenticeships that started before 1 April 2019 will continue at the previous co-investment rate of 10%.
Providers without a non-levy contract can continue to provide training directly to levy-paying employers and to non-levy payers if the employer is receiving transferred funds or they are providing training as a sub-contractor.
Non-levy paying employers receiving transfers from larger levy paying employers, can use these transferred funds to cover 100% of apprenticeship costs.
New measures announced from April 2024 include,
- From 1st April 2024, SME employers who do not pay the levy no longer have to contribute to the cost of apprenticeship training for 16–21-year-olds – government is fully funding the training costs for these individuals.
- From 6th April 2024, levy-paying employers can transfer up to 50% of their funds to support apprenticeships in other businesses – double the current 25%
Access the gov.uk Press Release for further information.
Resources:
Reserve Apprenticeship Funding
As a smaller employer, who does not pay the apprenticeship levy, you can reserve funds in the ‘finance’ section of your apprenticeship service account. You can also give your training provider permission to reserve them on your behalf.
Resources:
Did you know that if you’re not a levy-paying organisation you can receive funds from one that is? Or if you are, that you can transfer some of your funds to help others?