The Source Academy is a nationally approved supplier of apprenticeships. We offer flexible apprenticeship programmes in a wide range of occupational areas and we can work with your organisation to achieve the right mix of business training and qualifications to meet your requirements. Our team of experts can help you understand the rules and guidance for all employers about provision available, ensuring you receive the best value for your apprenticeship funds.
The government are currently offering incentive payments for employers who take on trainees and apprentices. Organisations can receive a £1,000 grant per trainee and up to a £2,000 grant per apprentice, in addition to a £1,000 grant per 16 - 18 year old apprentice. These grants are paid in instalments within the learner's training period.
The government also use an apprenticeship levy to fund apprenticeships across the UK.
Businesses with a payroll bill of over £3 million per annum will pay 0.5% of their wage bill into the Levy. Businesses who have a wage bill less than £3 million will be able to access funding based on the size of their company.
The Source have been working with employers across the UK since the Apprenticeship Reforms, including the Levy, came into force in April 2017. We have supported hundreds of companies to access funding to recruit new apprentices or upskill their current workforce using an apprenticeship.
Click on the links below to find out what the apprenticeship levy means for your business, or try our Apprenticeship Levy calculator.
In the Summer Budget 2015, the government announced its new initiative to help fund 3 million new apprenticeships by 2020. Since April 2017, the apprenticeship levy has been implemented to do just that.
The apprenticeship levy requires “all employers operating in the UK, with a pay bill over £3 million each year, to make an investment in apprenticeships”.
Employers who fall into this category pay 0.5% of their wage bill to the levy through their PAYE. It is applicable to any UK business, in any sector.
The levy will be deducted from your account monthly, whenever your pay bill is above £250,000. If, at the end of the year, your pay bill is less than £3 million, any deductions will be reimbursed.
If you do not have a wage bill of £3 million or over, you will be able to access funding to support with your apprenticeship training. This is based on the size of your company.
What you will pay for training will differ depending on the size of your company and what your wage bill is. There are three different types of funding streams through the Apprenticeship Levy.
Employer with a salary bill of more than £3m
If your business has a salary bill of £3m or more, you will pay into the Levy. This means you will contribute 0.5% of your annual salary bill (over £3m) into the Apprenticeship Levy. You can use this money to train existing staff or recruit apprentices using funds in your digital account through the Digital Apprenticeship Service.
You will get more out than you put in. For every £1 that enters the digital account, you will get £1.10 back.
A salary bill of less than £3m with more than 50 staff
If your business has a salary bill less than £3m and more than 50 staff, you will contribute at least 5% of total training costs up to the funding band cap. You can use this funding to train existing staff or recruit apprentices.
You will also receive a £1000 cash incentive if you recruit an apprentice aged 16-18.
A salary bill of less than £3m with less than 50 staff
For smaller companies with a salary bill less than £3m and less than 50 staff, fully-funded training for 16 – 18 year olds and 19 – 24 year olds is available as long as the apprentice has an Education, Health and Care (EHC) plan. The business will be able to use this funding to train existing staff or recruit apprentices.
You will also receive a £1000 cash incentive if you recruit an apprentice aged 16-18.
Apprenticeship Levy Calculator
We have developed an Apprenticeship Levy calculator to help you see what contributions you may need to make.
Funding through the Apprenticeship Levy can only be applied to activities related to an apprentice or apprenticeship being undertaken in your business.
What can be funded?
Funds can only be used for activity directly related to the apprenticeship as follows:
- Off-the-job training, including mandatory qualifications (distance, online or blended learning)
- Planned on-programme assessment and end-point assessment
- Materials (non-capital) used in the delivery of the apprenticeship
- Administration directly linked to the training or assessment, e.g. teaching materials, lesson planning, etc
- Funding (within the cap) to re-take qualifications or endpoint assessments with additional learning needs
- Accommodation costs for residential modules
What cannot be funded?
Funding cannot be used to cover the cost of the following:
- Enrolment, induction, prior assessments, initial diagnostic testing or similar
- Travel or apprentices’ wages
- Personal protective equipment or safety equipment required by the apprentice
- Off-the-job training delivered only by distance learning, optional modules or educational trips in excess of those required of the apprenticeship
- English and maths up to level 2 (funded separately)
- Re-sits for mandatory qualifications or end-point assessments for apprentices not requiring additional learning
- Registration or examination costs for qualifications not listed in the apprenticeship standard
- Capital purchases including lease agreements and maintenance
- Time spent by employees supporting or mentoring apprentices, or specific services not associated with the delivery and administration of the apprenticeship
The Digital Apprenticeship Service is an online portal which Levy paying businesses can access to manage their funds.
Once you have declared your levy to HMRC, you will be able to access funding for apprenticeships through a new Apprenticeship Service account. You can find out how to create an account on the Gov.uk website.
Through the online Apprenticeship Service you will be able to:
- Select an apprenticeship framework or standard
- Choose the training provider or providers to deliver the training
- Choose an assessment organisation
- Post apprenticeship vacancies
- Set the price agreed with your training provider
- Pay for apprenticeship training and assessment
- Stop or pause payments
You will need to create an account before your apprentice begins their apprenticeship with you. You will also need to know your learning provider’s UKPRN number so that funds can be paid to them directly. If you require help with this, please contact one of our Business Development Officers on 0114 263 5717.
It is important to note that unspent funds in your digital account will expire after 24 months.
If you have further questions about apprenticeships, please use the links below to access information from the Government’s website.
Institute for Apprenticeships
Digital Apprenticeship Service
How to Register
Our Commercial Training offer is supported by funding from the European Social Fund (ESF) and Education & Skills Funding Agency (ESFA).
To find out if your business is eligible for funding, please contact email@example.com
For more information about our training courses please click here.
About Skills Support for the Workforce
Skills Support for the Workforce (SSW) is a training initiative funded by the European Social Fund (ESF) and Education & Skills Funding Agency (ESFA). The Source Skills Academy are your local training provider who organise the funded training and provide evidence to the Funders that the training has taken place.
What Funded Training Means to Individual Participants
The Funders require that any individual taking SSW funded training should have an appropriate level of English and maths, provide proof of identity and address, plus allow The Source to collect your basic personal information to share with the Funders.
Please see important information about the collection of personal information, identification and evidence below:
All participants, regardless of prior academic achievements, are required to complete a short English and Maths assessment via the BKSB online portal. These assessments will take you about 20-30 minutes each to complete.
Please note: The online assessment tool works best in Google Chrome. You can ignore the additional English and Maths diagnostics exercises, only the online assessments need to be completed.
When you attend your first day of training, please bring a valid passport or birth certificate as proof of identity, PLUS a current driving license or utility bill dated within the last three months, as proof of address.
Please note: Proof of identity and address are not recorded or stored by The Source. However, we cannot accept your attendance for the funded training without sight of your proof of identity and address.
We send a register of all attendees to the Funders, which typically cover name, date of birth, confirmation of completing online assessments and sight of identity and address documentation.
Please note: A typical outcome of sharing your personal information with the Funders would be the addition of the training activity to your Learning Record at the Department for Education, who sponsor the ESFA.
You only have to complete the assessments and provide identification/proof of address once, no matter how many courses you attend under this funding.
However, please note that we cannot deliver you funded training without your completion of the online assessments, proof of identity and address as well as your consent to share this information with the Funders.