Funding for non-levy payers
A degree apprenticeship is a great way to develop your team. Thanks to the government, you can access the funding to cover your costs.
Funding for non-levy payers
If your organisation’s total wage bill is below the £3 million threshold, the government will fund up to 95% of apprenticeship course fees, up to the relevant funding cap. And with £27,000 being the maximum cost of an apprenticeship (set by the Institute for Apprenticeships), you are able to invest in a degree-level employee learning industry-specific knowledge, skills and behaviours both on and off the job for a maximum cost of £1,350.
Can non-levy payers receive additional financial support?
Higher and degree apprenticeships can be funded through the transfer of levy funding. Levy paying organisations can transfer up to 25% of their levy funding to any other employers (levy paying or not). Levy paying companies can transfer this 25% to organisations within their service delivery, to franchisees, or to any other non-levy paying organisation. Transfer payments are made monthly from transferring employer’s levy account into your own account, which will need to be set up with the Apprenticeship Service. If the transferring employer runs out of the funds, then the employer receiving the funds will return to the co-investment model.
Employers with 49 employees or less
You may be entitled to 100% funding and/or additional incentive payments if, on the first day of the apprenticeship, the apprentice is:
- aged between 16 and 18 years old (or 15 years old if the apprentice’s 16th birthday is between the last Friday of June and 31 August)
- aged between 19 and 24 years old and either has:
- an education, health and care plan provided by the local authority, or
- been in the care of the local authority.
You may also receive additional incentive payments if you meet the criteria above.
Additional incentive payments: 50% of the payment amount is made 90 days after the apprentice starts. Then, 365 days after the apprentice starts, if the apprentice is still in learning, the remaining 50% is paid. Payments are sent directly to NTU as the training provider. Upon receipt, NTU will pass these funds to employers within 30 days.
Employers who do not pay the apprenticeship levy
Employers who do not pay the levy benefit from significant government funding to support their commitment to apprenticeships. Currently the government support covers 95% of the total price of an apprentice’s training, with the employer contributing the remaining 5% of the cost.
From January 2020, employers who do not pay the apprenticeship levy have been able to create accounts on the apprenticeship service and reserve funding. The number of ‘active’ or ‘used’ reservations available to non-levy payers at any given time is currently limited to 10. This means that non-levy paying employers can recruit and train a maximum of 10 apprentices at any one time.
Find out how to set up an account on the apprenticeship service.
The NTU Apprenticeships team can offer you help and advice around registering your company on the apprenticeship service as well as further guidance on how this system will work in practice.
Gov.uk has detailed information on apprenticeship funding and setting up an online account:
It's never been more affordable for businesses to take on an apprentice
With a brand new bonus introduced for businesses to hire apprentices over the next six months, this means that employers could receive up to £3,000 for hiring an apprentice between August 2020 to January 2021.
But what does this mean for your business in a post-pandemic landscape, and how can the team here at NTU help you to stay competitive and develop, diversify and retain your workforce cost-effectively?