Funding & Incentives

In addition to the return on investment an apprentice will provide, hiring an apprentice may also allow employers to attract funded incentives from the Government.

Shortcuts

Got a question?

    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

    How do I receive funding and claim incentives?

    To receive funding and claim incentives all employers must establish their own Apprenticeship Service account. To learn how to create an account click here.

    Apprenticeship Levy

    What is the Apprenticeship Levy?

    The Apprenticeship Levy was introduced by the Government in April 2017. It is a tax on employers which aims to increase the number of apprenticeships and fund training in companies across the UK.

    Who is required to pay the Levy?

    The Levy is an amount paid at a rate of 0.5% of an employer’s annual pay bill. As an employer you will have to pay the Apprenticeship Levy each month if you:

    • have an annual pay bill of more than £3 million
    • are connected to any companies or charities for Employment Allowance purposes and have a combined annual pay bill of more than £3 million

    I am required to pay the Levy, what do I need to do?

    The Levy and allowance due will be calculated monthly and collected as part of the HMRC RTI Return.

    You can manage your apprenticeship funds on your Apprenticeship Service Account. Through the account you will be able to pay for training and assessment.

    You should note that there is a deadline on levy funds. If a business does not spend the levy funds in their digital account within 24 months they will expire, and the remaining funds transfer back to the Government.

    To learn more about the Apprenticeship Levy click here.

    I am not required to pay the levy, what do I need to do?

    Small and medium sized employers who do not pay the levy will need to reserve funds for apprenticeship training. This can be done through your Apprenticeship Service Account in the ‘Finance Section’.

    Small and Medium sized employers may need to make a 5% contribution to the cost of the apprenticeship training. The Government will pay the remaining 95% up to the maximum amount for the apprenticeship funding band for the chosen apprenticeship.

    Currently, apprenticeships for 16 – 18-year-olds are fully funded for small and medium sized employers with less than 50 employees.

    Grants & Incentives

    Recruiting an apprentice can qualify employers to benefit from government funded grants and incentives to support you and your apprentice.

    Current grants and incentives are listed below.

    £1000 Apprenticeship Incentive

    Employers are entitled to receive a £1000 incentive payment when they recruit an apprentice aged 16-18, or anyone under 25, formerly in care or who has an Education and Health Care Plan.

    For more information, click here.

    Adult Education Budget (AEB)

    The AEB aims to engage with adults 19+ to develop their skills to meet the vacancies and skills needs of employers across the West Midlands region. There are several initiatives available for employed and unemployed individuals.

    How can employers benefit from the AEB?

    As an employer, AEB funding can be used to help upskill existing and new staff. We will align our AEB to priority individuals, communities and sectors to drive up skills levels, and provide sustainable employment to improve productivity across the region.

    PTP Training Ltd can support to provide full or part funded courses to those seeking to upskill (subject to eligibility).

    What is the eligibility criteria for AEB?

    To be eligible for AEB funding individuals must fit the following criteria:

    • Aged 19+
    • Employed or unemployed
    • Not be on any other government funded programme/course

    Please note this programme is postcode led and only available to those in specific areas.

    To discuss your specific needs in complete confidence please call 03332 408302 or email info@ptp-training.co.uk.