Non – Levy Employers
In February 2025, the UK government implemented significant reforms to apprenticeship funding, aiming to enhance workforce development across various sectors.
Growth and Skills Levy:
Introduction: The previous Apprenticeship Levy has been restructured into the Growth and Skills Levy, supported by a £40 million investment.
Scope: This revamped levy now covers a wider array of training and development programs, making it more accessible and beneficial for businesses of all sizes.
Co-Funding for SMEs
Eligibility: Businesses with an annual wage bill under £3 million are exempt from the levy, classifying them as Small and Medium-sized Enterprises (SMEs).
Funding Structure: SMEs can access co-funded apprenticeships, contributing 5% of the apprenticeship cost, with the government covering the remaining 95%. This is managed through the Digital Apprenticeship Service (DAS) online account.
Apprentice Cap: Employers are permitted to recruit up to ten apprentices simultaneously.
Fully Funded Apprenticeships for SMEs:
Eligibility: Employers with fewer than 50 employees are eligible for full government funding of apprenticeship training costs for apprentices aged 16 to 21.
Funding Structure: For apprentices within this age range, the government covers 100% of the training costs, up to the maximum funding band.
Extended Support: Apprentices aged 22 to 24 with an Education, Health, and Care (EHC) plan or those who have been in local authority care also qualify for full government funding.
Changes to English and Maths Requirements:
For Adult Apprentices (19+): Effective from February 11, 2025, apprentices aged 19 or older are no longer mandated to pursue English and Maths qualifications as part of their apprenticeship. However, they may opt to undertake these qualifications, with government funding available.
For Younger Apprentices (16-18): The requirement to study and achieve English and Maths qualifications remains mandatory for apprentices who commence their training between the ages of 16 and 18.
These reforms are designed to provide greater flexibility and support for businesses and apprentices, fostering the development of a skilled workforce aligned with industry demands.
Our team of experts can support you with:
Upskilling current staff to support your business growth
A complimentary recruitment service to access the best available talent
Supporting you to understand the benefits of employing an apprentice to contribute to the success of your business
Appointing assessors with applicable industry experience to support your apprentice
