Apprenticeships boost

Posted on 21st March 2024 by Streets Employment & Payroll


Image to represent Apprenticeships boost

From the start of April 2024, the government will increase the amount of funding that employers who are paying the apprenticeship levy can pass onto other businesses. Apprenticeships can currently be funded by a levy paying employer transferring up to 25% of their unused levy to a different employer. 

Under the new measures, large employers who pay the apprenticeship levy will be able to transfer up to 50% of their funds to support other businesses, including smaller firms, to take on apprentices. This will help SMEs hire more apprentices by reducing costs and enabling more employers to get the skilled workers they need while unlocking more opportunities for young people in a huge range of sectors, industries, and professions. 

Hundreds of large levy-paying employers have already taken advantage of the opportunity to transfer their unused levy funds to other businesses. As of December 2023, 530 employers including ASDA, HomeServe and BT Group had pledged to transfer over £35.39 million to support apprenticeships in businesses of all sizes.

Government has also announced an additional £60m of new government funding to fully fund apprenticeships in small businesses from 1 April 2024 by paying the full cost of training for anyone up to the age of 21 years.

This will remove the need for small employers to meet some of the cost of training and saves time and costs for providers like further education colleges who currently need to source funding separately from the government and businesses. 


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