To encourage a greater number of businesses to take on apprentices, the government recently announced they will be increasing the amount of funding available for employers. From April 2019, the amount that employers have to contribute towards the cost of apprenticeships is being halved.
This change will apply to all employers who fund apprenticeships through the co-investment model, including levy payers who run out of funds. The amount that employers will have to pay towards apprenticeship training costs is being reduced from 10% to 5%, with the government now contributing 95% of the training costs.
How will this affect my business?
Depending on your salary bill and the amount of staff you have, your business will fit into one of three funding categories. Use our guide below to work out which category applies to your business.
If you're in category 1, this change will only affect you when taking on an apprentice aged 19 or over. If you’re in category 2, apprenticeships are funded through the co-investment model, so this change is a fantastic opportunity to recruit an apprentice and benefit from additional funding. For category 3 employers, the co-investment model will only come into play if you spend all of your available levy funds.
How can I make the most of this funding?
With more funding available for apprenticeships than ever before, now is a brilliant time to think about taking on an apprentice. Whichever category your business falls into, the most you will need to pay for recruiting an apprentice is: 5% of the training costs and the apprentice’s wage. In return you’ll get a passionate and enthusiastic member of your team that will benefit your business for years to come.
Find out more about recruiting a tech or digital apprentice here.