The way apprenticeships are being funded is changing
The government have introduced a new funding mechanism to support the costs of apprenticeship training.
Larger companies will pay a Levy, which will be used to fund apprenticeship training. This is a compulsory tax paid by larger employers at 0.5% of your total salary bill if it is over £3m. We can help you maximise the funding that is available by paying into the Levy. Find out more about the Levy below.
For smaller companies, the Skills Funding Agency will support with the majority of apprenticeship costs. Find out more about the costs for those with a salary bill less that £3m.
We can help guide you through all the funding for apprenticeships, offering you guidance on what training will be most beneficial for your organisation to help maximise your training budget for all businesses of all size.
The apprenticeship levy has been created by HM Government as a key way to fund and encourage an increased update in apprenticeships.
Not everyone will have to pay the Levy. Anyone with a salary bill less that £3m will not pay the Levy. Instead apprentices will continue to be supported by the government.
If you have been tasked with considering your organisation’s strategy for apprenticeships we can help. New College Durham offers a professional service supporting employers to formulate a training package using available funding.
In recognition of the value apprentices can bring to our economy, an incentive payment is available for employers who hire a new apprentice between 1 August 2020 and 31 January 2021.