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.
A Plan For Jobs
The government are offering short-term incentives to support businesses return to work and increase their workforce.
Job Retention Bonus
The government will introduce a one-off payment of £1,000 to UK employers for every furloughed employee who remains continuously employed through to the end of January 2021. Employees must earn above the Lower Earnings Limit (£520 per month) on average between the end of the Coronavirus Job Retention Scheme and the end of January 2021. Payments will be made from February 2021.
High quality traineeships for young people 16-24 year olds
For the first time ever, the government will fund employers who provide trainees with work experience, at a rate of £1,000 per trainee. The government will improve provision and expand eligibility for traineeships to those with Level 3 qualifications and below, to ensure that more young people have access to high quality training. A traineeship covers work skills, work experience, English and maths.
Payments for employers who hire new apprentices
The government will introduce a new payment of £2,000 to employers in England for each new apprentice they hire aged under 25, and a £1,500 payment for each new apprentice they hire aged 25 and over, from 1st August 2020 to 31st January 2021. These payments will be in addition to the existing £1,000 payment the government already provides for new 16-18 year-old apprentices, and those aged under 25 with an Education, Health and Care Plan – where that applies.
New funding for sector-based work academies
The government will triple the number of sector-based work academy placements in England in order to provide vocational training and guaranteed interviews for more people, helping them gain the skills needed for the jobs available in their local area.