Who pays for apprenticeship training?

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Who pays for apprenticeship training?

Apprenticeship training is paid for by the UK Government (90%), with the remaining 10% paid for by the employer. Companies can apply to the Government, local authorities or industry associations for apprenticeship grants to help with the funding. 

This funding comes from the Apprenticeship Levy, designed to make apprenticeship funding accessible to employers of all shapes and sizes across the UK. 

If a company’s annual wage bill is £3 million or more, 0.5% of the annual wage is paid into the apprenticeship levy. The apprenticeship levy is mandatory if you meet the threshold. Collected each month, it is also tax deductible. 

Most employers do not have an annual wage bill that high, with only a small percentage of UK employers (around 2%) hitting contributing to the apprenticeship levy. However, it has supported approximately 50% of all apprenticeships.

The levy goes into an Apprenticeship Service account, which can then be accessed by all UK employers, to fund apprenticeship training within 24 months. Any funds left in the account after the deadline automatically go back to the Government. You can also transfer 25% of your funds to smaller organisations to help with their apprenticeship training.

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