Employers who don’t pay into the levy benefit from significant government funding to support their commitment to apprenticeships.
For non-levy paying organisations that have more than 50 employees, apprenticeships are funded through the co-investment model. This means that the government will cover 95% of the cost of apprenticeship training up to the funding cap for your chosen programme.
You as the employer will then only need to pay the remaining 5% of the training costs. This payment will be made upfront to the training provider you choose to work with. This co-investment model also applies to levy paying employers who run out of available funds in their apprenticeship service account.
If your business falls into the co-investment category, you are in a fantastic position to take advantage of government funding for apprenticeships. In return for your 5% contribution towards training costs, you’ll get a passionate and enthusiastic member of your team that will benefit your business for years to come.
In addition to funding for the training programme, there is also a grant of £1000 for employers who take on apprentices aged between 16 and 18. No national insurance contributions need to be made for apprentices under the age of 25, so helping a young person to start their career can be very rewarding.
Find out more about recruiting an apprentice here.