APPRENTICESHIPS LEVY AND
Apprenticeships are a way of combining training with work and have a proven record of bringing productivity benefit to employers.
Swatpro Academy has a long track record of working with apprentices for hundreds of businesses whilst maintaining a friendly and flexible approach which is essential when training apprentices.
May 2017 saw the introduction of the Apprenticeship Levy causing many large businesses to start thinking about apprenticeships for the first time.
The levy requires all employers with an annual pay bill of more than £3 million to pay 0.5% into a "levy pot". This money is then reserved purely for the training of apprentices within the business.
The "levy pot" remains invested for 24 months with the employer to train apprentices, and then this money is re-invested by HMRC and longer term this could benefit other employers to train their staff? If you are considering how best to embed an apprenticeship culture within your business so that your "levy pot" remains with your company, then speaking with a Swatpro partner can be invaluable. You can recruit apprentices or offer apprenticeships as a way of upskilling your current staff.
If you make this training investment, the government invests 10% over and above the "levy pot". Apprenticeships are suitable for people aged 16 and over, with no upper age limit and range from an intermediary level through to a master's degree.
Non-Levy employers with 50 or more staff
Don't let the cost be a barrier to offering an apprenticeship programme which is right for the business. For those employers with an annual pay bill of less than £3 million then the government funds 95% of the cost of the apprenticeship. This is a fantastic investment! The highest costing apprenticeship we offer in the Digital Sector is the Network Engineer at £17,000 , which means the employer pays just £850. The highest apprenticeship we offer within the Hospitality & Catering sector is the Chef de Partie costing £9,000 which means the cost to the employer would be £450. We offer two ways to pay this; paying a one off single payment or split over the first 3 months of the apprenticeship.
Non-Levy employers with 49 or less staff
Don't let the cost be a barrier to offering an apprenticeship programme which is right for the business. For employers who have 49 staff or less, then the government will fund 100% of each apprenticeship, if this training is for young people aged 16-18*; for people aged 19 and above the government will fund 95% of the training as mentioned above.
Incentives for employers
In addition, the government offers both Levy paying and non-Levy paying employers a £1,000 incentive per apprentice aged 16-18 provided they are retained on programme.
*This incentive also applies to 19 -24-year old who have an education, health or care plan or who have been in the care of the local authority. Get in touch with us if you wish to find out more about our services.
High quality traineeships for young people 16-24 year olds
A traineeship is a skills development programme that includes a work placement. It can last from 6 weeks up to 1 year, and are ideally suited for progression on to an apprenticeship. Note that national funding for traineeships is due to end on 1st August 2023 but local provision may remain.