Following an announcement in the recent Budget, the Government will pay an employer who hires a new apprentice between 1 April 2021 and September 2021 and additional £3000. This £3000 incentive covers apprentices of all ages and will be made on top of the existing £1000 that employers currently receive for all new 16 to 18 year-old apprentices, as well as those under 25 with an Education, Health and Care Plan.
If you are a small business (50 employees or less) taking on an apprentice aged between 16-18 you will have no employer contributions to pay. For all employers taking on an apprentice aged 19 years and over there will be an employer contribution, this equates to 5% of the total funding cost, the Government fund the remaining 95%.
For larger organisations or those employers with a wage bill in excess of £3 million per annum. The levy is 0.5% of your annual wage bill. Levy payments are collected monthly by the HMRC through the PAYE process. It is this levy which is used to fund apprenticeship training in your organisation.