Hiring an Apprentice

Support and guidance

Employers that do not accrue their own levy funds still have access to funding in England but in a different way. Employers are required to cover 5% of the negotiated price of delivery directly to the training provider. This is often paid in single up-front payment. Remaining delivery costs are paid in the same way direct to the training provider as applicable. There is no recourse to attain a refund, in total or part, of an employer co-investment contribution. Non-levy organisations can still register to use the Apprenticeship Service accounts and are being encouraged to do so. On the AS account employers are able to reserve funds (for up to 10) future apprentices (reserved funds expire after 3 months and are still subject to the 5% employer co-investment).

Employers in England with an annual wage bill in excess of £3million per annum will pay 0.5% of that wage bill into a closed levy account that they will only be able to spend on apprenticeships.

Funds will be taken in month – and available to spend in the following. All payments will be ‘one month in arrears’. Employers will receive a 10% top up to monthly funds entering their Apprenticeship Service account.

Funds will expire after 24 months unless they are spent on apprenticeship training. This will also apply to any top-ups in the account.

If you have used all funds available in your apprenticeship levy, the 5% contribution will apply, requiring you to pay 5% of the total cost of any additional apprenticeships.