Apply
Prospectus Apply Now

Finance

Costs & Finance of Hiring an Apprentice

If you’re an employer with a salary bill over £3 million each year, you must pay the apprenticeship levy from 6 April 2017.

If you have less than 50 staff, the service is fully funded. If you have over 50 staff, there is a 5% 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year on from the introduction of the Apprenticeship Levy, organisation have paid in more than £1.39 billion but only withdrawn £108 million.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 £4.15 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 £4.15 for the first 12 months.

Employers who hire a new apprentice between 1 August 2020 and 31 January 2021 will receive a payment of:

  • £2,000 for apprentices aged 16 to 24
  • £1,500 for apprentices aged 25 and over

For more information on the Apprenticeship Levy please click here

To download our Employer Apprenticeship booklet please click here

Need more information?

For more information on how to take on an apprentice in your organisation get in touch

Suzanne Jovanovic

Apprenticeships