From 6 April 2017, employers with a wage bill of more than £3 million will pay the apprenticeship levy.
Use the links below to find out what this means for you and your company:
- If your company has more than 50 employees, but still doesn’t pay the levy, you will pay 10% of the training costs of each apprentice you take on.
- If you are a small employer (fewer than 50 employees) there will be no cost towards training an apprentice who is under 18 or aged 19-24 with an EHC plan, providing the cost of their training is within the maximum funding band.
- Employers who do not pay the apprenticeship levy will be subject to the same apprenticeship funding bands as employers who do.
- £1,000 is available to any employer taking on a 16-18 year old apprentice, or a 19-24 year old with an EHC plan – the same as for levy paying employers.
- From 2018, you will access funding through a new digital account, in the same way as levy paying employers will do from 2017, to pay for the costs of training.
Different rules apply to apprenticeship funding in Scotland and Wales, where funding will be accessed in the same way as it is at present.
Different rules also apply to groups of companies with the same owner (connected companies) and you should contact Her Majesty's Revenue and Customs (HMRC) on 0300 200 3200 for more information.
- To access the funds in your new digital account, you will need to register online with the Education and Skills Funding Agency (ESFA). Here, you can use the 'Estimate My Apprentices Funding' tool.
- If you use up all the funds in your digital account, you will need to pay 10% of any additional apprenticeship training costs, with the government paying the remaining 90%, up to the maximum in the funding band.
Contact the SFA at email@example.com or call 08000 150 600 for further information.
The government is giving employers more ownership of apprenticeship training.
- Employers who wish to deliver their own apprenticeship training can find out more about becoming an employer-provider on GOV.UK.
- The government is also encouraging employers like you to develop new apprenticeship standards to better meet your training needs.
- Further information on how to develop an apprenticeship standard is available on the Build UK website.
- CITB has helped employers develop over 30 new apprenticeship standards through our employer-led steering group.
The government has approved a sector plan by CITB to fast-track the move to new apprenticeship standards for construction employers.
- CITB provides up to £10,250 for each apprentice that a construction employer takes on, to help with the costs of having an apprentice.
- CITB Apprenticeships can help you find appropriate apprenticeships, access funding and will support you through every stage of your apprenticeship journey.
- Our Experience Construction programme helps to give young people a taste of whether or not an apprenticeship is right for them and you. Get more details on our work experience programme.
- Find out more about construction apprenticeships on the Go Construct website.
For more information on how we can help you take on an apprentice or develop standards email firstname.lastname@example.org or call 0344 994 4010.
The government apprenticeship levy is only designed to cover apprenticeship training fees.
The CITB levy is used to support construction employers to make sure industry has the skilled workforce it needs.
This includes the apprenticeship grants that support employers with the additional costs of employing an apprentice in construction.
Our levy will cover these additional apprenticeship costs, as well as supporting a wide range of other benefits to construction employers, such as:
- grants to support and encourage training
- promoting construction as a career of choice and encouraging young people to enter the industry
- research to identify future skills needs
- developing standards and qualifications to qualify our industry and keep employees safe.
Look out for further apprenticeship funding reforms in 2018.
Employers cannot transfer funds to an Apprenticeship Training Agency (ATA) or subcontractor. However, the government has committed to allowing employers to transfer up to 10% of the annual funds entering their accounts to other employers or ATAs in 2018.