From 1st April 2019, small and medium size employers who do not pay the apprenticeship levy will see their employer co-investment rate reduced to 5%. Prior to this reduction, small employers were able to access 90% government funding to cover the costs of apprenticeship training, and they then contributed the remaining 10%.
The reduction to 5% comes as the Government £695 million package to support apprenticeships was announced by the chancellor last year. Small employers will now pay 5% towards the cost of apprenticeship training and the government will pay the rest (95%) up to the funding band maximum.
This new rule will only apply to new starts who commence an apprenticeship after 1st April 2019, apprenticeships that started before 1st April 2019 will continue at the previous co-investment rate of 10%.
For more details of the funding change see here.