Employer Grants & Funding

EMPLOYER GRANTS & FUNDING

On 1st May 2017, the funding of apprenticeships changed in England. Depending on your organisation’s payroll and the age of the apprentices you enrol, you may or may not have to pay for apprenticeship training and also you may or may not qualify for additional grants or tax relief. This page from NowSkills is to help our customers understand more about the finances surrounding apprentices.

WHAT DOES THE IT APPRENTICESHIP COST?

That depends on your profile as an employer and the Apprenticeship you choose for your apprentice. Here are the main list prices of our current IT Apprenticeship range:

Standard Level Price* Duration
Infrastructure Technician 3 £14,950 15 – 18 months
Software Development Technician 3 £14,950 15 – 18 months
Digital Marketer 3 £11,950 15 – 18 months
Unified Communications Technician 3 £14,950 15 – 18 months
Network Engineer 4 £17,950 18 – 24 months
Software Developer 4 £17,950 18 – 24 months
Cyber Intrusion Specialist 4 £17,950 18 – 24 months
Software Tester 4 £17,950 18 – 24 months
Data Analyst 4 £17,950 18 – 24 months
IS Business Analyst 4 £17,950 18 – 24 months
Cyber Security Technologist 4 £17,950 18 – 24 months

*Prices & discounts may vary and also Funding may be available, please contact us for latest information

Prices correct November 2017

WHAT DO YOU PAY?


In this example, let’s say we are purchasing a Level 3 Digital Marketer Standard with a price of £11,950

Employee Size or Payroll Apprentice Age (at start) Training Funded? Training Costs (Paid by Employer) Additional Payment to Employer Wage (Paid by Employer)
<50 employees or <£3m payroll 16, 17 or 18 100%
£0
£1,000
National Minimum Wage or more
19+ 90% co-funded
£1,195
£0
National Minimum Wage or more
<50 employees  or £3m payroll or levy payers who have spent all levy funds 16, 17 or 18
90% co-funded
£1,195
£1,000
National Minimum Wage or more
19+
90% co-funded
£1,195
£0
Natioanl Minimum Wage or more
+£3m payroll using only levy funds

16, 17 or 18
Paid from the levy until it has been used up then it will be co-funded
£11,950
£1,000
National Minimum Wage or more
19+
Paid from the levy until it has been used up then it will be co-funded
£11,950
£0
National Minimum Wage or more

 

I think my Levy funds will be used up, what happens?

 

If you use all your Levy funds you will move into the 90% co-funded band. That is, any apprentice training costs after the Levy is used will be charged to you at 10% of the normal rate. We can arrange for you to pay this to us in instalments.

 

Can I negotiate a different price for our training?

The government would like employers and also training providers to negotiate the pricing. If you would like to do this then please let us know.

 

Can I do a deal with you about our payments to you?

The Educations and Skills Funding Agency (ESFA) are very strict about what Levy & co-funding can be spent on – the Levy and also funding is viewed as government money with government requirements attached to it. Funding must be spent on training; not on wages, administration or your own mentoring time*. Training providers cannot refund funding or Levy payments to employers – the money must be spent on apprenticeship skills. *For a full up to date list, please contact us.

 

Can I pay my co-investment or Levy payments in instalments?

Yes. If you pay from your Levy account, the system automatically pays us monthly once it is set up. If you are paying the 10% co-funded contribution from your own monies, we can offer you 10 payments by Direct Debit. Once your apprentice has started work, we will send you a Direct Debit mandate. If you would like to pay another way, please contact us to discuss. What else do I have to pay?

 

Apprentice’s Wages

Apart from training costs, whether that is funded or not you will also need to pay your apprentice’s wages. Also, the apprentice minimum wage is £3.50 per hour and an Apprentice must be employed for a minimum of 30 hours per week. You can pay more than the minimum. For more information, please click here

 

Tax Relief on Apprentice’s Wages

If you employ an apprentice under the age of 25, you may no longer have to pay employer Class 1 National Insurance contributions on their earnings up to the new Apprentice Upper Secondary Threshold. For more information please visit here

 

What about employer grants?

The AGE grant or its equivalent in Merseyside or Greater Manchester has varying rules and availability. Furthermore, the AGE grant will end on 31st July 2017 and at this stage, there are no plans to replace it. Overall, for the latest information, please ask us.

 

Do I qualify to receive an Additional Payment?

Under the new funding rules, if you recruit an apprentice aged under 19 when they start you will be eligible for an Additional Payment of £1,000. This is separate from your Levy, funding or co-investment. It is a separate payment made to the employer by the government.

 

Any more questions? Please let us know

Additionally, this guide is a shortened version of the new funding rules. We believe it answers most of the question our customers have been asking us. However, if you still have questions please let us know, we’d be delighted to hear from you.

WE DON’T RESELL ANYONE ELSE’S TRAINING

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