Apprenticeships

Apprenticeships are work-based training programmes for anyone aged 16 or over, which combine working with studying to gain skills, knowledge and behaviours in a specific job. Apprentices can be new employees or current ones who require a significant amount of re-skilling (perhaps because of moving into a new role). Our experienced team will work with you and can help you recruit new Apprentices or develop your existing team. All our advisers have substantial industry experience, probably within your sector, and are backed up by a team of qualified Apprentice assessors and tutors. Apprenticeships are available to all businesses, from micro to large multinational companies, and all industry sectors.

National apprenticeship research and Benefits:

82%

Building Skills

82% of employers take on Apprentices to build the skills capacity within their Businesses.

75%

Lower recruitment costs

75% of Apprentice employers say the programme has helped cut recruitment costs.

88%

Increased employee satisfaction

88% of Apprentice employers believe that lead to a more motivated and satisfied workforce, leading to a greater loyalty and quality.

80%

Reduced staff turnover

80% of employers feel that Apprenticeships reduce staff turnover.

81%

Greater productivity

81% of Apprentice employers say that they make their business more productive. The average completer increases business productivity by £214 per week.

81%

of consumers…

favour using a company which take on Apprentices OVER 200,000 workplaces in England offer Apprenticeships to attract new talent and re-skill existing staff.

Having an Apprentice
in your organisation will:

Improve productivity
Fill skills gaps, including specialist skills specific to your industry
Make your business more competitive
Reduce training costs

Reduce recruitment costs
Assist with succession planning
Motivate staff and reduce staff turnover
Provide a significant return on investment

We offer a wide choice of Apprenticeships
to suit all industries and sectors, including:

Business, IT, Administration and Management
Civil Engineering
Construction, Technical and Building Services
Engineering, Manufacturing and Maintenance
Health, Care, Early Years and Scientific

Logistics and Warehousing
Motor Vehicle – Light and Heavy
Professional Services
Service Industries
Sport

For more information on the individual Apprenticeships available please see the links below:

How much does an Apprentice cost?

There is a minimum wage per hour for different age groups of Apprentice – contact us for details.
In addition your business will contribute towards the training cost of the Apprentice. If your business
wage bill is below £3million per year, then the contribution you will be asked to make is 10% of the total cost of training, with the remaining 90% being paid for by the government. For small businesses and those employing 16-18 year old apprentices there are additional incentives available that may offset this training cost over the duration of the Apprenticeship. Please speak to your Business Development Advisor to understand what the costs would be for your business and what incentives may be available.

Apprenticeship Levy

If your company’s wage bill is £3million or more, you will already be paying an Apprenticeship Levy of 0.5%. This is paid into a digital account held by government, to help fund the training of Apprentices in your business and you can draw down this levy over time to pay for the training of Apprentices that you take on. If you are a business paying the Apprenticeship Levy, contact us to find out what it means for your business and how we can help you take advantage of the benefits this brings. More information about the Apprenticeship Levy and 10% non-levy contribution can be found in our Apprenticeships Employers’ Guide.

Estimate my Apprenticeship funding

Course Code	Sector Area	Course Title	Training Fee (£)	Assessment Fee (£)

Apprenticeship Levy – FAQs

Will my business pay the Apprenticeship Levy?

Do you know if you will have to pay the Apprenticeship Levy and how it will impact your business? Only 1.3% of UK employers will need to pay the Apprenticeship Levy. There will be alternative arrangements for those employers who won’t pay the Levy.

All UK employers who have a total employee pay bill above £3m a year will pay the Levy. This includes public and private sector, charities and educational providers such as academy groups and universities. The Levy rate is set at 0.5% of any pay bill over £3M per annum.

How will the Government collect the Levy?

Payments will be collected monthly by HM Revenue and Customs (HMRC) through Pay as You Earn (PAYE), alongside tax and National Insurance.

How much Apprenticeship Levy will I pay?

Employers get a £15,000 fixed annual allowance to offset against the Levy payment. Please use the following link for more information on the direct gov website.

www.gov.uk/government/publications/apprenticeship-levy-how-it-will-work

Here are some examples of how much employers may pay in Levy:

Example 1:

Employer of 250 employees, each with a gross salary of £20,000

Annual pay bill: 250 x £20,000 = £5,000,000
Levy applied: 0.5% x £5,000,000 = £25,000
After allowance applied: £25,000-£15,000 means £10,000 Levy payment

Example 2:

Employer of 100 employees, each with a gross salary of £20,000

Annual pay bill: 100 x £20,000 = £2,000,000
Levy applied: 0.5% x £2,000,000 = £10,000
After allowance applied: £10,000-£15,000 means £0 Levy payment

One of the benefits of the scheme is that it places control of Apprenticeship funding into the hands of the employer. This allows you to invest in Apprenticeship training for new and existing staff to help secure the future of your business.

What does the Apprenticeship Levy mean for small employers?

If your business has an annual pay bill less than £3m it will not have to pay the Levy, however you will still be able to access funding for Apprenticeships.

Co-funded Apprenticeship Training

If you don’t pay the Levy and have over 50 employees, Apprenticeship training will be co-funded. The Government will pay 90% of the negotiated cost of Apprenticeship training and the employer will pay the remaining 10%.

Fully-Funded Apprenticeship Training – Small Company Waiver

If you employ less than 50 staff and you train 16-18 year old Apprentices they will be fully funded.

NB If Apprentices are aged 19+ the co-funded rate applies and you will pay 10% of the negotiated cost.

Can Apprenticeship funding be spent on existing staff?

Yes – a staff member in an existing job role, where the individual needs significant new knowledge and skills, may undertake an approved Apprenticeship programme.

Funds can only be used towards the costs of Apprenticeship training. They cannot be used on other associated costs such as Apprentice wages, travel and subsidiary costs or the costs of setting up an Apprenticeship programme.

What happens to the Levy money once it's paid?

The money collected by HMRC will sit in your digital account which you will be able to use to pay for Apprenticeship training.

For further information, please see the following link via the direct gov website: –

www.gov.uk/guidance/pay-Apprenticeship-Levy

How will I draw down from the Levy fund?

Levy paying employers will be able to set up their Digital Accounts on the Digital Apprenticeship Service (DAS), choose the type of Apprenticeship they want to run, the number of Apprenticeships they take on, all of which can be delivered through Stoke on Trent College. Once the account is set up Levy payers will access this to make payments to the College.

What will an Apprenticeship cost?

For Levy and non-Levy payers, please contact our Business Services Team to discuss costs.

Which provider can we use to deliver the Apprenticeship programme?

Stoke on Trent College is an approved provider on the Register of Approved Training Providers (RoATP).

This means we have been through an application process with the ESFA that considers due diligence, capability, quality and financial health to assess our capability to deliver high-quality Apprenticeship training.

Are there any additional payments for Apprenticeships?

An employer will receive a payment of £1000 towards the additional cost associated with Apprenticeship training if, at the start of the Apprenticeship, the Apprentice is:

Aged between 16 and 18 years old (or 15 years of age if the Apprentice’s 16th birthday is between the last Friday of June and 31 August)
Aged between 19 and 24 years old and has either an education, health and care plan provided by the local authority, or has been in the care of the local authority

Will my Levy fund expire and are there any top ups?

The Government will automatically add 10% to the funds in your Apprenticeship service account. They will apply this 10% top-up monthly, at the same time the funds enter your account.

Funds that you don’t use will expire 24 months after they enter your account. Whenever a payment for training is taken from your account, the service always uses the funds that entered your account first. Your Apprenticeship service account will let you know when funds are due to expire.

Under what circumstances will I have to pay more?

The Government will automatically add 10% to the funds in your Apprenticeship service account. They will apply this 10% top-up monthly, at the same time the funds enter your account.

How will the Government fund Apprenticeships which start before the Levy is introduced?

You will need to pay more once your business has spent all your Levy contribution and top-up and you want to spend more on Apprenticeship training.

The Levy - Our FREE consultation service

Stoke on Trent College is perfectly positioned to help you prepare and understand how the new Apprenticeship Levy will affect funding for new or existing staff.

Simply call our Business Services Team on 01782 603603 or email us at business@stokecoll.ac.uk

Further Information

Further information on the support available can be found in the Government’s funding updates or by contacting our Business Services Team who can take you through what the changes mean for you and how Stoke on Trent College can help you to make the most of the opportunities it provides.

Tel: 01782 603603

Email: business@stokecoll.ac.uk

Stoke on Trent College, Stoke Road, Shelton, Stoke on Trent ST4 2DG and Moorland Road, Burslem, Stoke on Trent, ST6 1JJ