Call us on 0345 8728722
< swipe navigation >

Under £3 million annual wage bill

What is the Apprenticeship Levy?
In 2017 the government changed the way Apprenticeships are funded. Employers are categorised into Levy and non-Levy payers depending on the size of their annual wage bill.

Key Facts

  • Employers with an annual wage bill of over £3 million will contribute to the Apprenticeship levy. The Apprenticeship Levy will contribute to the cost of the Apprenticeship.
  • Employers with an annual wage bill of less than £3 million will not contribute to the Apprenticeship Levy.
  • The vast majority of employers will not contribute to the Apprenticeship Levy.
  • Apprenticeship starting after May 1st 2017 are enrolled on the new funding arrangements.

Employers with 49 employees or less will contribute:

16 - 18 year olds19 - 24 year olds (if have EHC Plan or Care Leaver)All other apprentices
Employer contribution0%0%5%
Government contribution100%100%95%
Additional funding available£1000 employer incentive £2000 additional government incentive for starts between 1st August and 31st January £1000 employer incentive £2000 additional government incentive for starts between 1st August and 31st January £1500 additional government incentive for starts between 1st August and 31st January

 

In addition, if an Apprentice needs to study English and maths the government will pay 100% of this.

Government Announcement: New Employer Incentive

  • Applies to Apprentices that are new to the business only – i.e. not existing or recent employees.
  • Paid out to all employers regardless of annual wage bill.
  • Only applies to new starts between 1 August 2020 and 31 January 2021.
  • Your business could be entitled to £2,000 for each new Apprentice under the age of 25 or £1,500 for each new Apprentice aged 25+.
  • New Apprenticeship incentive is in addition to the existing £1,000 payment the government provides for new 16-18-year-old Apprentices and those aged under 25 with an Education, Health and Care Plan.
  • Employers can apply for funding via the Apprenticeship Service.

Register your details

Privacy Statement
Peterborough Regional College (PRC) is the Data Controller in respect of the data recorded on this form. We will only use your personal information to administer your account and to provide the products and services you have requested from us. A copy of our Data Protection policy is available from reception.