Apprenticeships // I'm an employer

Funding and Grants

You will need to consider carefully the costs of taking on an apprentice. Smaller businesses may need to pay 10% towards the cost of their training fees payable directly to the Training Provider. This is in addition to the salary that you will need to pay the apprentice.

The funding that you can receive depends upon various factors: the age of the apprentice and also the size of your business.

Apprenticeships Financial Help - a guide for East Cambs employers

Is your annual wage bill over £3m?
Is your annual wage bill over £3m?
Is your annual wage bill over £3m?

You could get

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*A legal document that describes a young person's special educational, health and social care needs. **Subject to terms and conditions

Businesses with a payroll of more than £3 million per year

Businesses with a payroll that exceeds £3 million every year have to pay the Government an “Apprenticeship Levy”. This equates to 0.5% of your total annual pay bill (minus a £15k allowance). Levy funds are then held in an account for the business to use on apprenticeship training and the Government tops this fund up by an additional 10% (unused funds expire after 24 months).

For more information on the Apprenticeship Levy visit https://www.gov.uk/government/publications/apprenticeship-levy-how-it-will-work/apprenticeship-levy-how-it-will-work

Business with a payroll of under £3 million per year

In England, government will fund 90% of the total cost of your apprenticeship and employers will contribute 10% of the total cost. However, for non-levy paying businesses in England with fewer than 50 employees, if your apprentice is aged between 16 and 18 years old, you will receive 100 per cent of the cost of the training.

If the apprentice is between 19 and 24 years old, you’ll get 90% per cent of the training cost paid by the Government (or 100% if the apprentice is a Care Leaver or under a Local Authority education, health and care plan). Contributions for apprentices aged over 25 will depend on the sector and level of qualification they are training in. The money for training is usually paid straight to the Training Provider, which saves you the headache of administrative paperwork.

Additional financial incentives for employers:

Employers and training providers both receive an additional £1,000 in two equal instalments after 3 and 12 months where the apprentice is between 16 and 18 years old inclusive.

In addition, if your business is in the East Cambs area and meets the following criteria then you can apply for a top-up grant from East Cambs District Council:

  • The business must be based within the administrative boundaries of East Cambridgeshire District Council.
  • The business must employ fewer than 250 employees
  • The apprentice must be aged between 16-24 and must reside within the administrative boundaries of East Cambridgeshire.
  • The business must not have employed more than ten apprentices within the last three years.

Contact us if your business qualifies for this grant.

Only Training Providers who are on the Register of Apprenticeship Training Providers (RoATP) are eligible to draw down Government funding.

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