The system is currently different for employers who have a pay bill of less than £3 million. Any training and assessment costs are shared with the government; this is called ‘co-investment’. Employers are required to pay 5% of the cost and the government contribute 95%.
Non levy employers employing fewer than 50 employees and recruiting 16-18 year olds, 19-24 year old care leavers and/or 19-24 year olds with an Education Health & Care plan receive 100% of the apprenticeship training and assessment costs up to the maximum funding cap.
If you do not pay the levy, you won’t be able to use the digital apprenticeship service to pay for apprenticeship training and assessment until at least mid-2019 (testing currently underway), unless you are receiving a transfer of funds from a levy paying employer.
Instead, you’ll need to agree a payment schedule with the provider and pay them directly for the training. The provider must prove that you have paid your contributions as a condition of government paying its contribution.
For more information go to the .gov website at Apprenticeship Funding
From January 2020 to March 2020 non-levy employers will be able to apply to register on the digital apprenticeship service if they feel ready.
Through the apprenticeship service employers can: manage their apprenticeship funding, select a suitable apprenticeship standard and an end-point assessment organisation, as well as advertise an apprenticeship and select a suitable provider to deliver their apprenticeship training.
More details to follow early in 2020.