To improve the skills of the UK workforce and to increase the number of apprenticeships from the current figure of approximately 1000 to 3 million by 2020. The Government has now introduced the Apprenticeship Levy.
- All employers with a payroll of over £3 million automatically pay the Apprenticeship Levy of 0.5% to the Government through PAYE. The Government adds an extra 10% to these funds, which are held in a digital account and can then be used by the employer to spend on accredited apprenticeship programmes, such as those offered by the University of Winchester.
- Employers with a payroll of less than £3 million do not pay the Levy but are still eligible for funding. The Government pays 90% of the tuition fees for apprentices of any age. So businesses below the payment threshold pay a maximum of 10% of the cost of training an apprentice.
- Organisations with fewer than 50 employees do not pay anything towards the cost of training an apprentice under 19 years of age, a person leaving care or with additional needs.There are extra incentive payments of £1000 for any organisation taking on an apprentice under 19 years of age, a person leaving care or with additional needs.
- Click here for our funding flowchart to help you understand your own funding situation.
- Apprentice Wages
Apprentices are full time employees – they must be paid at least the minimum wage, although many employers pay significantly more. They are also entitled to time off to study – a minimum of 20% of their time should be “off-the-job training”.
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