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Apprenticeship Funding

Thinking about taking on an apprentice? Now is the time to recruit!

You could receive up to £3,000* when employing a new apprentice in your businesses up until 31 January 2021.

* When you hire new Apprentices between 1 August 2020 and 31 January 2021, you can apply for extra funding to give your organisation a boost. For Apprentices aged 16-24, you’ll receive £2,000, for those aged 25+, you’ll receive £1,500. The payment is in addition to the existing £1,000 you’ll already get for taking on an Apprentice who is aged 16-18 years old (or under 25 with EHCP)

What is the Apprenticeship Levy?

The Apprenticeship Levy was introduced on 6 April 2017. Since then, any business with a PAYE bill of over £3m will pay 0.5% into the Levy. This money is automatically deducted by HMRC on a monthly basis and is managed through the online Apprenticeship Service portal where employers can source Apprenticeship providers, pay providers and manage their Levy balance.

The Apprenticeship Levy can only be utilised to pay for Apprenticeship Training. It cannot be used for Apprentice wages or any additional training outside the main aim of Apprenticeship Standard/Framework.

More information on the Apprenticeship Levy

All Levy paying employers will pay full cost for the Apprenticeship programmes from their ‘Levy pot’ until the funds have been used up. Any further Apprenticeship training undertaken thereafter will be co-funded at 5% of the cost.

If you are unsure how this will affect your organisation and you would like a personal consultation about how to best utilise your Levy funds, we would be happy to come and speak with you. Contact us at or on 01756 693 681 to arrange an appointment.

Apprenticeship Funding for Non-Levy Paying Employers

Non-levy paying employers are required to pay a 5% ‘co-investment’ towards the Apprenticeship training costs with the Government covering the other 95%.

However, smaller organisations employing fewer than 50 people employing a 16 – 18 year old will get 100% of the funding for their Apprentice and will not need to make a contribution to the training.

In some regions of the country, there are additional grants SMEs can access to help towards the cost of employing an Apprentice. We will be able to advise you on enquiry to see if there are any grants in your area that will apply to your business.

Age of Apprentice on Commencement

Size of Employer 16-18 19+ 19-24 EHCP* or Care Leaver
Fewer than 50 employees No employer contribution 5% of the cost No employer contribution
More than 50 employees 5% of the cost 5% of the cost 5% of the cost
Levy Paying Employer Full cost Full cost Full cost
Levy Paying Employer (once levy spent) 5% of the cost 5% of the cost 5% of the cost
Employer Incentive £1000 Yes No Yes

*EHCP – Educational Health Care Plan.

Apprenticeship Standards

‘Apprenticeship Frameworks’ have changed to ‘Apprenticeship Standards’.

The new ‘Standards’ are made up of a set of required competencies (Skills, Knowledge and Behaviours) specific to a particular role, that the Apprentice needs to achieve in order to pass End Point Assessment. These standards have been developed and ‘trailblazed’ by leading businesses within that industry.

Apprentices will work towards meeting these Standards of competence during the Apprenticeship which will be measured by an ‘End Point Assessment’ conducted independently by a third party: an accredited End Point Assessment Organisation.

At present, many Apprenticeship Standards have been approved and we are already delivering these whilst others are still in development. The status of the Apprenticeship you are interested in rolling out in your business will determine whether Craven College will be offering Frameworks or Standards at the time of your enquiry. As the development of Standards progress, the options will be subject to change.

Apprenticeship Standards

Craven College’s Commitment

Craven College continues in its commitment to support employers by offering support and guidance, to assist employers in the recruitment, delivery and administration of your Apprenticeships and keep our employers informed of any emerging changes.

Craven College will cost each element of the new Standards including End Point Assessments and ensuring clear, consistent and competitive pricing without compromising on the quality of delivery and level of support provided.