Employers are you ready?
You will be asked to negotiate and agree a price with the training provider you have chosen from the approved register. This price will cover the delivery of apprenticeship training towards a specific standard or framework, and the cost of assessing the apprentice at the end of their apprenticeship.
You can use funds in your digital account to pay your training provider, up to the maximum allowed by the relevant funding band.
For example, the apprenticeship standard you have chosen is in a funding band with a limit of £6,000 and you negotiate a price of £5,000 with your training provider. We will deduct this amount from your digital account, in monthly instalments, over the life of the apprenticeship.
If you negotiate a price with a training provider that is more than the maximum allowed by the funding band, then you must pay the difference between the band maximum and the agreed price, in full. You can’t make this payment from your digital account.
Employers that don’t pay the levy
You will negotiate and agree a price with the training provider you have chosen from the approved register. This price will cover the delivery of apprenticeship training towards a specific standard or framework, and the cost of assessing the apprentice at the end of their apprenticeship. You pay for this through co-investment with us. Co-investment means that you and the government each pay some of the money to the provider. Currently this has been set to 10% co-funding
Your payment plus the government contribution cannot total more than the maximum allowed by the funding band for the standard or framework you have chosen.
If you negotiate a price with a provider that is more than the maximum allowed by the funding band, then you must pay the difference between the band maximum and the agreed price, in full. You won’t get government support towards these costs.
All employers receive extra support for
- employing 16 to 18 year old apprentices : When you take on an apprentice who is between 16 and 18 years old at the start of their apprenticeship, you will receive a payment to help meet the extra costs of employing them.
- apprentices with additional needs : To help meet extra costs, you will receive the same payment as you do when you recruit a 16 to 18 year old apprentice, if you recruit:
- an apprentice who is between 19 and 24 years old and who has an Education and Health and Care Plan provided by the local authority
- a 19 to 24 year old who has been in the care of the local authority
- Funding for English and maths training : Apprentices have to meet a minimum standard in both English and maths up to Level 2.
So what is an Apprenticeship?
There main rules governing what an apprenticeship is are as follows
- the apprentice must be employed in a real job; they may be an existing employee or a new hire
- the apprentice must work towards achieving an approved apprenticeship standard or apprenticeship framework
- the apprenticeship training must last at least 12 months
- the apprentice must spend at least 20% of their time on off-the-job training
- Employing an apprentice is very simple
- If you are interested in employing an apprentice we can help you with the entire process
Standards vs Frameworks
These are the 2 different types of apprenticeship training.
- Apprenticeship standards are the new type of apprenticeship developed by employers. Each standard covers a specific job role and sets out the core skills, knowledge and behaviours an apprentice will need to be fully competent in their job role and meet the needs of employers in the sector. Standards are developed by employer groups known as ‘trailblazers’.
- An apprenticeship framework ordinarily involves a series of work related vocational and professional qualifications, with workplace and classroom based training. We will phase out frameworks between now and 2020, as we move over to the employer-led apprenticeship standards.