UK Apprentice Levy: Maximising Benefits for Nursery Owners
At Swift Childcare, we simplify the process of accessing funding for training and developing your team of childcare professionals. Whether you want to upskill your current staff or hire new talent through our apprenticeship programmes, we’re here to guide you through the funding options.
Our dedicated team supports you in navigating these funding opportunities to ensure your nursery or childcare setting maximise the benefits fully.
The government covers 100% of the training costs for non-levy paying employers taking on an apprentice aged 16-21
What is the Apprenticeship Levy
The Apprenticeship Levy is a 0.5% tax applied to employers with a wage bill over £3 million per year. For nurseries that meet this threshold, levy funds are placed into a digital account, which can be used to pay for apprenticeship training and assessments.
What Can the Levy Be Used For?
Levy funds can be spent on a variety of apprenticeship training programmes, including those designed to upskill your current workforce or recruit new apprentices.
What Can’t the Levy Be Used For?
Levy funds can only be used for training and assessment costs, not for wages or operational expenses. Nurseries must cover these additional costs through their general budget.
Co-funding for Small Nurseries
For nurseries with a payroll under £3 million that do not contribute to the Apprenticeship Levy, the government offers co-funding. This means the government covers 95% of apprenticeship training costs, leaving your nursery to pay only 5%.
Who is eligible? Childcare providers with a payroll below £3 million.
What does it cover? 95% of apprenticeship training costs.
How we help: We’ll support you throughout the co-funding process, ensuring access to top-quality training at minimal expense.
Apprenticeship training for new and existing staff aged 16 – 18 is fully funded if you employ less than 50 staff. Employer makes a 5% contribution for the training of apprentices (new or existing staff) aged 19+ up to a maximum of £350.
Employers receive a £1,000 cash incentive for recruitment or enrolment of an existing employee who is aged 16 – 18 onto an apprenticeship.
Apprenticeship Levy
The Apprenticeship Levy allows large nurseries with a payroll over £3 million to fund apprenticeship training. By paying into the levy, your nursery can use the funds to support apprentice development.
Who is eligible? Nurseries with an annual payroll of over £3 million.
What does it cover? Up to 100% of apprenticeship training costs, including fees and materials.
How we help: Swift ensures your nursery effectively uses these funds to meet development needs and maximize available resources.
Employer makes a 0.5% contribution of annual salary bill through PAYE. Employer uses a digital account to pay 100% from their Levy Fund for the training of new or existing employees. For every £1 paid into the levy pot you get £1.10 to spend. On full utilisation of the levy, all additional apprentices are funded with a requirement to contribute 5%. Employers receive a £1,000 cash incentive for recruitment or enrolment of an existing employee who is aged 16 – 18 onto an apprenticeship.
Employers receive a £1,000 cash incentive for recruitment or enrolment of an existing employee who is aged 16 – 18 onto an apprenticeship.
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