Non-Levy Paying Employers
All employers, whether you pay the Apprenticeship Levy or not, are now required to use the Apprenticeship Service. To do this they will need to set up a Digital Apprenticeship Service (DAS) account.
From January 2020 employers who do not pay the apprenticeship levy will be able to reserve funding for an apprenticeship in advance of recruitment or an offer of an apprenticeship being made to an existing employee. This will be through your Digital Apprenticeship Service (DAS) account. This reservation ensures that employers can plan, and that funds will be available to pay for the training from the point the apprenticeship starts. The employer must then turn this ‘reservation’ into a ‘commitment’ once the training provider and an apprentice are confirmed. At this point funding can be released to the training provider in the usual way.
The Digital Apprenticeship Service (DAS) account will enable you to:
~Choose from a range of apprenticeship standards;
~Choose a provider from the Register of Apprenticeship Training Providers (RoATP) to deliver apprenticeship training;
~Find an End-Point Assessment Organisation (EPAO);
~Reserve access to funding for apprenticeship training and assessment;
~Agree contracts with providers; and
~Benefit from collaborative relationships by delegating permissions to providers to service their accounts.
Please note that:
~Employers can only reserve funding for apprenticeship standards
~Employers may only make reservations for up to three apprenticeship starts at the moment
~Reservation can only be made for up to three months in advance
Further information can be found in the Government Document:
Cost of training apprentices
Most non-levy employers will be asked to make a 5% contribution to the cost of this training and The Government will pay the rest (95%), up to the maximum amount of funding available for that particular apprenticeship standard. Each Standard has a different funding value. The upper limit of the funding band will cap the maximum price that The Government will ‘co-invest’ towards. Anything that sits outside the Apprenticeship Standard will be chargeable at a commercial rate, and must be agreed with the training provider when the contracts are drawn up. This includes the Registration and Certification Fees for anything that does not form part of a particular Standard.
Employers with fewer than 50 staff are able to have the apprenticeship 100% funded for apprentices that are aged between 16 and 18 years at time of registration. This will all be funded by The Government.
As well as this, The Government is also offering an additional incentive to employers that take on an apprentice aged between 16-18 years. This is currently £1,000, payable across two instalments. The first after the apprentice has been in training for 90 days, and the second as long as the apprentice has been in training for 365 days. These will be payable through your Training Provider. This additional payment is for both Levy and Non-Levy paying employers.
Payments for the apprenticeship will be made directly to your Training Provider through the Digital Apprenticeship Service (DAS). So no money will 'physically' change hands. You will be able to use the DAS to see what is going into the account, and then what is going to the Training Provider.
Anything that has been agreed that sits outside the Apprenticeship Standard (such as Registration & Certification fees, PPE etc) will be payable to the Training Provider and will be invoiced separately. A payment schedule will be discussed for this, and agreed at the start of the apprenticeship.
Please see the incentives chart for further information on the current incentives that are available.
If you would like to speak to SETA about the new incentives available, or to see how we could support your business with apprenticeships or upskilling existing staff then please contact Nick Hinks, Business Development Manager, email@example.com or Nikita Allum, responsible for Government Funding & Contracts Management firstname.lastname@example.org