What is Co-Funding ?
Government co-funding compliments the Apprenticeship Levy scheme in two ways.
First, if you are an employer who has an annual payroll of less than £3m a year, you will not pay the Apprenticeship Levy. So co-funding replaces the Levy for non-levied employers. Through co-funding, government ensures that smaller, non – levied employers continue to have access to funding, enabling meaning you can still use apprenticeships to train your workforce. The government will fund 95% of the cost of any apprenticeship, and, as the employer, you only pay 5%
Additionally, if you are a levy-paying employer and want to train more apprentices than can be directly funded from your Apprenticeship Service levy account, Government will pick up 95% of the cost of training the additional apprentices and ask you to only contribute 5%.
In either case – levy-paying employer or not – government co-funding can significantly increase the number of staff that you can train whilst radically reducing the cost.
Co-Funding for SMEs
If you are not a levy-paying employer, accessing co-funding is straightforward. First you need a training provider to work with – like the Apprenticeship College – who can walk you through the steps you need to take. Here is an example of how it works.
- We work with you to identify which apprenticeships you want to enrol your staff onto
- Each apprenticeship has what is known as a ‘band value’ – sometimes referred to as the ‘recovery value’.
- Government will pay the provider 95% of the band value.
- The training will invoice you, as the employer, for the 5% contribution towards the apprenticeship training.
Payments are profiled/invoiced monthly over the duration of the apprenticeship. 20% of the total is held back until the apprentice has sat their End Point Assessment (EPA).
Co-Funding for Levy Payers
If you are a levy-paying employer then the full 100% cost of the apprenticeship training you agree with us can be paid directly from the funds in your Apprenticeship Service Account (See our Levy Recovery page for further. When you have recovered all of your apprenticeship levy but still want to continue to develop your workforce you can still do so through co – funding.
Once your Levy funds have been committed Government will contribute 95% of any Levy shortfall, leaving you as the employer to contribute the remaining 5%.
The Apprenticeship College values relationships with other training providers where we can work together to deliver our programmes to our customers. Partnerships exist whereby the partner training provider is responsible for delivering the Masterclasses, Training Workshops and/or Theatre Based Learning as designed by the Apprenticeship College, the partner would be remunerated in line with our budgeted costs for delivering knowledge content. The Apprenticeship College will retain all responsibilities for on-boarding of learners, skills coaching, and end point assessment. The Apprenticeship College is fully responsible for the learners, but recognise an employer might have a preferred training provider we can partner with. Providing the partnership organisation meets our due diligence requirements, and is listed on the Register of Apprenticeship Training Providers, they would receive approximately 33% of funding received by The Apprenticeship College for delivering the knowledge content (an approximation as sometimes there can be mixed models whereby we are delivering some of the Workshops).