The government set an ambitious target of 3 million new apprentices by 2020. To achieve this, apprenticeships had to evolve to become more occupationally led, rather than a simple tick box exercise, focusing too heavily on completing a qualification, rather than creating and developing a competent and valued member of staff.

To achieve this, new apprenticeship ‘Standards’ were born, allowing training providers to create bespoke pathways, unique to every employer. Furthermore, EPA (End Point Assessments) were introduced, to help improve the quality of training and assessment of apprenticeships.

What is an apprenticeship?

Apprenticeships are a mixture of on the job training and classroom based learning. Apprenticeships provide people with the skills they need for a chosen career path along with a qualification.

Apprenticeships vary in duration of competition due to the level of the apprenticeship and employment sector. An apprenticeship can last between 1 year up to 5 years.

Apply

Benefits as an apprentice

  • As an apprentice, you will gain hands on experience in the sector you wish to pursue as a career.
  • You will receive many benefits including earning a salary, paid holidays, gaining qualifications and valuable skills.
  • Your employer and training provider will support you through your journey as an apprentice. They will give you the guidance you need in order to be successful, ensure your requirements are met, offers the right skills needed in the job and meets the national standards.
  • Apprenticeships are rapidly growing, each day more businesses are taking on apprentices. An apprentice shows they are serious about the job and learning the requirements. Employers will value you as an apprentice in their company.

Apprenticeship levy

A1S offers a comprehensive levy management service to guide and support our levy paying employers through the minefield of levy processes and procedures.


What is the Apprenticeship Levy?

  1. The Apprenticeship Levy is a compulsory ‘tax’ which aims to fund the development and delivery of three million new apprenticeships by 2020.
  2. All employers in the UK with a wage bill of more than £3 million must pay 0.5% of their payroll into a central levy ‘pot’, which can then be used to fund apprenticeships. Employers have an allowance of £15,000 per year to offset against their levy payment.
  3. The levy is paid monthly on a rolling basis to HMRC and will be collected through the PAYE system alongside income tax and National Insurance.
  4. Employers can access their levy contribution in an online digital account, which can be used to pay for apprenticeship training and assessment.

Funding for non-levy paying employers

  1. SMEs with a wage bill under £3 million (non-levy employers) contribute 5% of the apprenticeship cost, the government will pay the remaining 95%. This also applies to levy paying employers who have exhausted their funds.
  2. SMEs with a wage bill under £3 million (non-levy employers) contribute 5% of the apprenticeship cost, the government will pay the remaining 95%. This also applies to levy paying employers who have exhausted their funds.
  3. Both levy and non-levy payers will receive a £1000 incentive for taking on and training an apprentice aged 16-18.
  4. The Government will pay £1000 to employers if they train 19-24 year olds leaving care or who have a Local Authority Education Health and Care (EHC) plan.
  5. Maths and English training for apprentices is fully funded.
  6. Employers are not required to pay National Insurance Contributions for apprentices under the age of 25 on earnings below the higher tax rate of £827 a week (£43,000 a year).

Did you know you can now transfer your funds to other employers?

If you are a levy paying employer, you can now transfer up to 25% of the annual value of funds to other employers to pay for their apprenticeship training and assessment. These transfers provide more flexibility and will help larger employers with unspent levy funds to support smaller employers in taking on apprentices.

INCENTIVE PAYMENTS FOR HIRING A NEW APPRENTICE

The Government introducing payments to support organisations that take on new apprentices between 1 August 2020 and 31 January 2021.

You can apply for the payment from 1 September 2020, after you add new apprentices to your apprenticeship service account.

The payment is in addition to the existing £1,000 you’ll already get for taking on an apprentice who is:

  • Aged 16 to 18 years old
  • under 25 and has an education, health and care plan or has been in the care of their local authority.

 

WHAT YOU’LL GET?

 

Employers will receive:

  • £2,000 for apprentices aged 16 to 24

  • £1,500 for apprentices aged 25 and over

You’ll get the payment in 2 equal instalments: 50% after the apprentice completes 90 days of their apprenticeship and the remaining 50% after 365 days. To get the full payment, the apprenticeship must last for at least one year.

We make payments on the 10th working day of each month. We’ll ask for your organisation’s bank details when you apply, so that we can pay you directly.

WHAT YOU CAN USE THE PAYMENT FOR?

 

The payment is different to apprenticeship levy funds and you can spend it on anything to support your organisation’s costs. For example, you could spend it on facilities, uniforms, your apprentice’s travel or their salary. You do not have to pay it back.

 

 

FURTHER SUPPORT

 

A1S offers an end to end levy management service for everything you need to effectively manage your apprenticeship levy.

If you are a levy-paying employer and need advice and support, please contact our specialist team on 01375 275 052