What costs are involved?
Apprenticeship costs depend on whether your organisation pays the apprenticeship levy, your annual pay bill, employee numbers and the age of the apprentice. Elevated Knowledge can help you understand the funding route and employer responsibilities before recruitment begins.
A guide to the apprenticeship levy and employer responsibilities.
- ✓ Understand whether you are a levy or non-levy paying employer.
- ✓ Confirm the training and assessment contribution route.
- ✓ Plan for apprentice wages, supervision and workplace support.
- ✓ Make sure the correct agreements, statements and provider contracts are in place.
A guide to the apprenticeship levy.
Employers with a wages bill of more than £3 million a year have paid the apprenticeship levy from 6 April 2017. Levy payments are reported and paid to HMRC through the PAYE process.
Who pays the levy?
Employers with a wages bill of more than £3 million a year pay the apprenticeship levy through the PAYE process.
Less than 2% of UK employers
Less than 2% of UK employers pay the levy, but levy funds create opportunities for young people and support the skills British businesses need.
Training control
The levy gives employers control of their training and how apprenticeship funds are used.
Training and assessment price
Employers agree a total price for each apprenticeship, including the costs of training and assessment.
Levy and non-levy employer costs
The contribution route depends on your wages bill, employee numbers and the age of the apprentice. The table below summarises the core funding information.
Cost guide
Desktop table + mobile cards| Employer type | Contribution route | What this means |
|---|---|---|
| Levy paying employer | Wages bill over £3 million | Reports and pays the apprenticeship levy to HMRC through PAYE. In England, the government tops up levy funds by an extra 10%, paid directly into the employer’s apprenticeship account. |
| Non-levy employer with more than 50 employees | Pay bill less than £3 million | Asked to contribute 5% towards apprenticeship training. |
| Non-levy employer with under 50 employees | Pay bill less than £3 million | Apprenticeship training is fully funded for 16 to 21 year olds. If the apprentice is over 21 years of age, a 5% contribution is payable. |
Levy paying employer
Reports and pays the apprenticeship levy to HMRC through PAYE. In England, the government tops up levy funds by an extra 10%, paid directly into the employer’s apprenticeship account.
Non-levy employer with more than 50 employees
Asked to contribute 5% towards apprenticeship training.
Non-levy employer with under 50 employees
Apprenticeship training is fully funded for 16 to 21 year olds. If the apprentice is over 21 years of age, a 5% contribution is payable.
What are my responsibilities as an employer?
The responsibilities of the employer will be discussed in detail when you first meet with a member of the Elevated Knowledge recruitment team. In general, employers are responsible for ensuring the following.
Off-the-job training access
Your apprentice must be given the opportunity for off-the-job training with Elevated Knowledge’s training academy or at one of our partner training centres.
On-the-job training
Employers must provide on-the-job training and supervision to support the apprentice’s development in the workplace.
Safe working environment
The employer must provide a safe working environment for the apprentice throughout their employment and training.
Contract and wage
The apprentice needs a written contract of employment and must be paid at least the minimum apprenticeship wage.
What else does the employer need to provide?
The apprenticeship must be built around a genuine role, with enough time and support for the apprentice to complete their programme and gain the required knowledge, skills and behaviours.
Workplace mentor
Employers should provide a mentor within the workplace to help support the apprentice’s progress and development.
Genuine job role
There must be a genuine job available, with a contract of employment long enough for the apprentice to complete their apprenticeship.
Wages and development
Employers must pay the apprentice’s wages and the role must help them gain the knowledge, skills and behaviour needed to achieve the apprenticeship.
Employers need the correct agreements in place.
Apprenticeships require clear documentation between the apprentice, employer and provider so everyone understands the programme, commitment and responsibilities.
Apprenticeship agreement
Employers need an apprenticeship agreement in place with their apprentice for the duration of the apprenticeship.
Commitment statement
A commitment statement must be signed by the apprentice, the employer and the provider.
Clear programme duration
The apprenticeship must be in place for long enough for the apprentice to complete their apprenticeship.
Provider support
Elevated Knowledge will discuss employer responsibilities in detail when you first meet with a member of the recruitment team.
Extra requirements for levy-paying employers
Employers who pay the apprenticeship levy and use the apprenticeship service need additional arrangements in place with their provider and must keep wage and working pattern information accurate.
Contract for services
Levy-paying employers using the apprenticeship service need a contract for services with their main provider.
At least one year
They need to have an apprenticeship in place for at least one year.
Correct wage by age
The apprentice must be on the correct wage for their age, including time spent at work, in off-the-job training and doing further study.
Wage compliance
Apprentice wages must be consistent with the law for the time they are in work and in off-the-job training.
Progression updates
Updates on progression and average weekly hours must be logged and checked with the training provider.
Working pattern changes
Changes to working patterns must also be logged and checked with the training provider.
Need help with apprenticeship costs?
Speak to Elevated Knowledge about levy funding, non-levy contributions, employer responsibilities and the practical steps involved in recruiting an apprentice.