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Employers - Costs & Finance of Hiring an Apprentice

Due to the new Apprenticeship Levy set by the government, costs depend on the salary bill and employee number of your organisation. Employers with a salary bill of over £3 million are now levy payers, and if this is the case, you as the employer can access the digital service where you will have already paid into the levy.

If you have less than 50 staff, the service is fully funded. If you have over 50 staff, there is a 10% employer contribution, for example a Business Admin Level 2 will cost the employer £200.

In either scenario, if you employ a 16-18 year old learner, you will receive a cash incentive grant of £1000.

More than £1.28 billion paid by employers is languishing unspent in the National Apprenticeship Service accounts, according to new data analysis commissioned by The Open University (OU). Just one year on from the introduction of the Apprenticeship Levy, organisation have paid in more than £1.39 billion but only withdrawn £108 million. Any funding that remains in their National Apprenticeship Service accounts will expire after 24 months.

If the money is not used within 24 months, it will be made available for smaller businesses to spend on Apprenticeship schemes, and it will NOT go back to the employer.

The minimum wage for a 16-18 year old Apprentice is £3.50 per hour, employed a minimum of 30 hours and a maximum of 40 hours. If you employ someone aged 19+ working towards their first Apprenticeship, the minimum wage is £3.70 for the first 12 months.

For more information on the Apprenticeship Levy please click here

For more information please email: sjovanovic@springboard-ne.org

 

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