as well as being a great way to build the skills of your workforce, degree apprenticeships can be exceptionally good value.
while the cost of an apprenticeship will vary, the funding has been designed to make it easy and affordable for employers to sign up:
- if you pay the apprentice levy, you can put your contributions towards the course costs.
- if you do not pay the levy or have insufficient contributions, the government will pay at least 95% of the cost.
for a full list of eligibility criteria, go to the government website.
incentive payment for hiring a new apprentice
the government’s plan for jobs will help to kickstart the nation’s economic recovery. in recognition of the value apprentices can bring to our economy, an incentive payment will be made to employers who hire an apprentice between 1 august 2020 and 31 january 2021.
the apprentice must be a new employee to the business, have a contract of employment start date between 1 august 2020 and 31 january 2021 (inclusive) and must not have been employed by the employer within the six months prior to the contract start date.
claims can start to be made by employers in relation to these apprentices from 1september 2020. those claims must be made through the apprenticeship service.
there will be two levels of payment based on age. for apprentices aged 16-24 the payment will be £2,000, and for apprentices aged 25 or over the payment will be £1,500. the payment will be made directly to employers in two equal instalments, where the apprentice is still in learning at day 90 and day 365.
there will be no limit on the number of incentive payments that an employer can claim for apprentices eligible to receive funding, provided each apprentice meets the criteria, including being a new employee.
if your annual pay bill is more than £3million
you can put your levy contributions towards the cost of a degree apprenticeship.
if your apprenticeship levy pot covers the course costs, you will not need to make any additional payments. if the pot has been exhausted, the government will pay at least 95% of the fees.
you can also get a £1,000 support payment from the government, if one of these applies for your apprentice:
- is under 19 when they start the apprenticeship
- is under 25 and a care leaver when they start the apprenticeship
- has a local authority education, health and care plan
if your annual pay bill is less than £3million
the government will pay at least 95% of tuition fees for any apprentice.
you could get extra financial help, depending on how many people you employ and your apprentice’s personal circumstances.
you could get a £1,000 support payment from the government, if one of these applies for your apprentice:
if you employ fewer than 50 people and your apprentice is under 19 at the start of apprenticeship, the government will pay all of the tuition fees and give you the £1,000 support payment.
wages, national insurance and other benefits
apprentices are full-time employees. they are entitled to a wage, statutory holidays and paid time off to study.
you will need to pay a minimum starting salary of at least £12,000, although some employers pay significantly more.
if your apprentice is under 25, you do not have to pay class 1 national insurance contributions.