Apprenticeship training enables new or existing staff to combine working with study, to gain skills and knowledge in a specific job at any age.
- The benefits of hiring an apprentice
- Types of apprenticeships
- How apprenticeship training is paid for
- Support with apprenticeship costs
- Levy transfers
- York Apprenticeship Hub
The benefits of hiring an apprentice
Hiring an apprentice is a productive and effective way for any business to grow talent and develop a motivated, skilled and qualified workforce.
For statistics on employee retention, motivation, satisfaction and skill development, read the information from GOV.UK
Types of apprenticeships
Apprenticeship training courses are called apprenticeship standards.
There are around 700 apprenticeship standards available, from entry level 2 or 3 to degree or master's degree level 6 or 7, covering most employment sectors such as:
- business, management and administration
- construction
- digital
- engineering and manufacturing
- legal, finance and accounting
- rail
- sales, marketing and procurement
- transport and logistics
To search for an apprenticeship standard, visit the Institute for Apprenticeships website.
How apprenticeship training is paid for
Each apprenticeship standard has a maximum associated cost, for example:
- a level 3 business administrator standard costs up to £5,000
- a level 6 (degree level) chartered manager standard costs up to £22,000
This is paid in monthly instalments to the training provider through the Apprenticeship Service Account (ASA) watch this short video on how to create an account. However, how much of this you pay, depends on whether you pay the Apprenticeship Levy or not.
If your annual pay bill is less than £3 million, you are likely to be a ‘non-levy paying business’, where the government funds 95% of training and assessment costs (up to the funding band maximum), and you cover 5%.
However, if one or more of the following statements is also true, the government funds 100% of the training and assessment costs:
- The apprentice is aged between 16 and 21 years old on the first day of their apprenticeship (or 15 years of age if the apprentice’s 16th birthday is between the last Friday of June and 31 August)
- The apprentice is aged between 22 and 24 years old on the first day of their apprenticeship and;
- has either an Education, Health and Care Plan provided by their local authority and/or;
- has been in the care of their local authority
If you have an annual pay bill of over £3 million, you'll be a levy payer, where 0.5% of your pay bill is automatically placed into your online ASA monthly by HMRC, topped up by 10% from the government. This is used to fund apprenticeship training and assessment costs for new or existing staff and you can transfer up to 50% of your unspent levy funds to other employers (see ‘Levy transfers’).
Other associated costs
You are responsible for costs relating to the apprenticeship, such as:
- wages
- licences to practise
- equipment
- travel and subsidiary costs
Support with apprenticeship costs
A £1,000 government grant is available for any employer who hires a new apprentice who is:
- aged 16 to 18, or;
- aged 19 to 24 and has previously been in care, or;
- aged 19 to 24 and has an Education, Health and Care Plan
You can spend the grant on any costs associated with supporting an apprentice in the workplace, for example:
- uniforms
- your apprentice’s travel
- your apprentice’s salary
You receive the payment in 2 instalments from the training provider.
Employers can also access government funding through the Access to Work scheme, which helps cover the extra costs of supporting disabled employees. This scheme provides grants to help with expenses like specialist equipment, travel costs, communication support, and other practical assistance.
Levy transfers
Levy paying employers can now transfer up to 50% of their unallocated apprenticeship levy funds to employers who are non-levy payers (or levy payers who have spent their levy) and want to hire new apprentices or develop existing employees.
Transferred funds are used to cover 100% of the approved apprenticeship training and assessment costs for the duration of the apprenticeship.
As a levy paying employer, City of York Council is keen to support local businesses by transferring unallocated apprenticeship levy funds to Small and Medium Enterprises (SMEs), Public Sector, and Voluntary, Community and Social Enterprises (VCSE).
Any York-based employer who is interested in receiving or sending levy funds should contact the Apprenticeship Hub.
York Apprenticeship Hub
Contact the Apprenticeship Hub if you would like information on apprenticeship training or levy transfers. We can also talk to you about Supported Internships, and signpost you to other business services if required.
Also see
- Jobs, training and volunteering
- Apprenticeships with us
- Apprenticeships in York
- Employer guide to apprenticeships (GOV.UK)