SMALL & MEDIUM EMPLOYERS

As a Non-Levy employer (SME), you will have an annual pay bill of under £3 million

Cost effective Apprenticeships for SMEs

For those businesses that have an annual pay bill of under £3 million you will be classed as a non-levy employer. This means you will share the cost of an apprenticeship with the Government. This is called co-investment. The government pays 95% towards apprenticeship training with the employer paying the remaining 5%.

As an employer you will be invoiced for the 5% co-investment one month after the start of the apprenticeship.

This is good news for small to medium sized employers that are looking to up-skill their existing workforce or find new talent. The government recognises that SME’s play a vital part in getting people back into education and work, and due to this offer this scheme.

Learning Development-Consultant Business Partner

Small Employer Incentive

The government recognises that smaller employers have historically played a very important role in helping young and disadvantaged people into the workforce. They continue to support small employers to take on younger Apprentices (16-18). So, for employers with fewer than 50 employees, the government will pay 100% of the Apprenticeship training costs for these individuals. £1,000 is available to any employer taking on a 16-18 year old apprentice, or a 19-24 year old with an Educational Health Care Plan (EHCP).

Under the Age of 25

Employers of Apprentices under the age of 25 are no longer required to pay secondary Class 1 (employer) National Insurance Contributions (NIC) on earnings up to the Upper Earnings Limit (currently £43,000), for those employees. As an employer you will save up to 13.8% on everything the apprentice earns over £8,424 a year.

Example: If and apprentice is earning £18,000 per year, at a national insurance rate of 13.8% (the first £8,424 earned is not subject to NIC)

The remaining £9,576 is subject to NIC which provides the employer with a saving of £1,321 they no longer need to pay during the entirety of the apprenticeship and whilst the apprentice remains under the age of 25.

Under The Age of 25
Small & Medium Employers

Information, advice & guidance

The government recognises that smaller employers have historically played a very important role in helping young and disadvantaged people into the workforce. They continue to support small employers to take on younger Apprentices (16-18). So, for employers with fewer than 50 employees, the government will pay 100% of the Apprenticeship training costs for these individuals. £1,000 is available to any employer taking on a 16-18 year old apprentice, or a 19-24 year old with an Educational Health Care Plan (EHCP).

7 %

higher profit margins for employers hiring apprentices

Apprentices increase
productivity 
by an 
average of

£ 1

per week

1 %

of employers recognised that apprentices bring new ideas 
to their organisation

1 %

of consumers favour using a company that employs apprentices which demonstrates commitment to the local community and develops the workforce of the future

Find out more

If you want to find out how SMEs can benefit from
apprenticeships and courses then get in touch.