How to spend your apprenticeship Levy account?
A Levy allowance is calculated on a monthly basis and will accumulate throughout the year with any unused allowance being carried over from one month to the next. Employers in England will be able to reclaim their levy contributions either as an employer provider, or through a registered training provider such as Remit Group. Apprenticeships have now all been allocated a funding band. There are 15 funding bands, ranging from £1,500 to £27,000, regardless of age or geographic location which provides a more simplistic fee for employers to negotiate when working with providers. By knowing the value of the qualifications you want delivering, as a rough guide, you can calculate how many of the relevant apprenticeships can be delivered using your Levy allocation. The vouchers will last for 24 months from the time they appear in your digital account. If they are not spent within this time, they will expire.
What happens if your pay bill is less than £3m?
There are certain employers who will be required to contribute towards the cost of their apprenticeship training outside of the Levy system, such as those whose pay bill is less than £3m per tax year. If your business fits the criteria, you will be required to contribute 5% of the total cost of your apprenticeship training through a co-investment payment- the Government will pay the remaining 95%.
Recruiting 16-18 year olds
If you recruit a 16-18yr old apprentice, you can receive a £1000 incentive from your training provider. This payment is made in two equal sums (£500) at month 3 and month 12 of the qualification.
If you are looking to develop your apprenticeship and Levy strategy, Remit offers a free consultancy session with one of our apprenticeship Levy experts. They will go through the background to the Levy, provide estimates on your liability and advise on potential apprenticeship pathways from across our portfolio of qualifications.