Funding for Non-Levy Paying Employers

Funding for Non-Levy Paying Employers

The information on this page is for employers who do have an annual payroll less than £3,00,000 . If your payroll is above this figure then you should view our Apprenticeship Levy pages.

Funding for  Non-Levy Apprenticeships can be quite complex if you still have questions after reading this page,  please contact us.

Every apprenticeship is slightly different: Different durations, different content and the delivery method from training providers are never quite the same. Each Apprenticeship Standards has a funding band, that is the maximum amount of funding available for an apprenticeship. Funding bands are subject to change.

Apprenticeship Funding Bands

Apprenticeship StandardLevelPrice*Duration
Infrastructure Technician3£15,00015 – 18 months
Software Development Technician3£15,00015 – 18 months
Digital Marketer3£11,00015 – 18 months
Junior Content Producer3£11.00015 – 18 months
Unified Communications Technician3£15,00015 – 18 months
Network Engineer4£17,00018 – 24 months
Software Developer4£18,00018 – 24 months
Cyber Intrusion Specialist4£18,00018 – 24 months
Software Tester4£18,00018 – 24 months
Data Analyst4£15,00018 – 24 months
IS Business Analyst4£18,00018 – 24 months
Cyber Security Technologist4£18,00018 – 24 months

 

*Prices correct June 2019

 

How Much do non-levy employers pay?

 

Employee Size or PayrollApprentice Age (at start)Apprenticeship Funded?Training Costs (Paid by Employer)Additional Payment to EmployerWage (Paid by Employer)
NON LEVY EMPLOYERS
<50 employees or <£3m payroll16, 17 or 18100%
£0
£1,000
Yes
19+95% co-funded
5%
£0
Yes
<50 employees  or £3m payroll or levy payers who have spent all levy funds16, 17 or 18
95% co-funded
5%
£1,000
Yes
19+
95% co-funded
5%
£0
Yes
LEVY EMPLOYERS
+£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
100% or 5%
£1,000
Yes
19+
100% or 5%
£0
Yes

Can you offer us flexible payment terms? 

Where your organisation has to pay 5% we can arrange for you to pay this monthly. Please ask us for details.

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 £3.90 per hour (June 2019) and an Apprentice must be employed for a minimum of 30 hours per week. You can pay more than the minimum, most employers do. 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. The grants have been replaced by the Additional Payments.

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 applies to both non-levy and levy paying employers.

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.