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There must be a genuine job available with a contract of employment long enough for an apprentice to complete their apprenticeship.
Employers must pay an apprentice’s wages and the role must help them gain the knowledge, skills and behaviours they need to achieve the apprenticeship with support from the employer.
Employers can select a training provider from the Register of Apprenticeship Training Providers and agree a total price for the cost of training and assessment.
For an apprenticeship standard, this should include the cost of the end-point assessment which must be agreed with the provider selected from the Register of End-Point Assessment Organisations.
Employers need to have:
• An apprenticeship agreement in place with their apprentice for the duration of the apprenticeship
• A commitment statement signed by the apprentice, employer, and Eden Training Solutions
• A contract for services agreement between Eden Training Solutions and the levy employers
• An apprenticeship in place for at least one year
• The apprentice on the correct wage for their age, for the time they are in work, and completing off-the-job training
As a Non-Levy employer (SME), you’ll have an annual pay bill of under £3m. Non-Levy paying employers will share the cost of training their apprentices with government – this is called ‘co-investment’; the government pays 95% towards to the cost of apprenticeship training with the employer paying the remaining 5%.
You will be able to agree a payment schedule with us and spread your payments over the lifetime of the Apprenticeship. An example of how this might work is provided below:
• Employer chooses Apprenticeship (eg: £6,000)
• Government co-invests 95% = £5,700
• Employer co-invests remaining 5%= £300
• Payment options available to spread the cost of your contribution over 3, 6 or 10 monthly instalments
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 EHC plan; also available for Levy employers.
National Insurance Breaks for Employers of Apprentices Under 25
Employers of apprentices under the age of 25 are no longer be required to pay secondary Class 1 (employer)
National Insurance contributions (NIC) on earnings up to the Upper Earnings Limit (currently £40,000), for those employees. This is up to a 13.8% saving on everything the apprentice earns over £8,424 a year for the employers of apprentices.
An employer has a staff member who is under 25 and they encourage them to enrol onto an apprenticeship.
If the employee 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 and provides the employer with a saving of £1,321 that they no longer need to pay, for the entire time the employee remains on the apprenticeship and under the age of 25.
• The levy is calculated 0.5% per cent of the employers’ annual pay bill.
• Levy paying employers receive a £15,000 annual allowance, which is then offset against their annual pay bill.
(This means that if you’re an employer with an annual pay bill of £3m or less, then you don’t have to pay into the levy.
• The Government will also provide an additional 10% top up of funds on monthly basis into your online account with the Apprenticeship service.
• This means that for every £1.00 that is deposited into your online account, you’ll receive £1.10 in funds to invest in apprenticeship training.
• You will pay the Levy to HMRC through the PAYE process.
• Employers that don’t pay into the levy (annual pay bill of £3m or less), will receive 100% of the cost of the training funded by the Government for 16-18-year-old apprentices.
• Employers will only have to pay 5% of the cost of the apprenticeship training for those aged 19 or over, with the Government funding the remaining 95% cost of training.
• Employers with less than 50 employees can also access a £1,000 Government incentive for taking on a 16-18-year-old apprentice.
• The levy applies to employers based in England and that have an annual pay bill above £3m.
• The annual pay bill is defined as employee earnings subject to Class 1 secondary National Insurance Contributions.
An apprenticeship is a genuine job with an accompanying assessment and skills development programme. It is way for individuals to earn while they learn gaining valuable skills and knowledge in a specific job role.
The apprentice gains this through a wide mix of learning in the workplace, formal off-the-job training, and the opportunity to practise new skills in a real work environment.
Apprenticeships benefit employers and individuals, and by boosting the skills of the workforce they help to improve economic productivity.
How do they work?
Apprentices must spend at least 20% of their time on off-the-job training, however, they may need more than this if, for example, they need training in English and maths.
It is up to the employer and training provider to decide how the off-the-job training is delivered. It may include regular day release, block release and special training days or workshops. It must be directly relevant to the apprenticeship framework or standard and can be delivered at the apprentice’s normal place of work as long as it is not part of their normal working duties.
It can cover practical training such as shadowing, mentoring, industry visits and attending competitions.
On-the-job training helps an apprentice develop the specific skills for the workplace and they should be supported by a mentor. Once an apprentice completes their apprenticeship, they should be able to demonstrate that they can perform tasks confidently and completely to the standard set by industry.