As of Monday 1st April 2019, the following changes for Apprenticeships will be implemented.
The first change is a rise in the National Apprenticeship Minimum Wage. This was previously £3.70 per hour, but has increased to £3.90. This wage applies to apprentices under 19 and those aged 19 or over who are in their first year of their apprenticeship. By law, all employers must pay this wage or more to their Apprentice. If you require any further information, please click here.
The second change that we have seen this month refers back to October 2018, when Chancellor Philip Hammond announced during his budget speech that the fee for co-investment Apprenticeship training will be reduced from 10% to 5% for non-levy employers. This was part of the further reforms to the Levy.
As from Monday 1st April 2019, the reduced fee will be implemented and all SMEs (non-levy payers) who are employing an Apprentice will only be required to contribute 5% to the Apprenticeship training cost. Please keep in mind that this does not affect the funding of Apprentices who are ages 16 to 18, as the Government will continue to fund 100% of this training and assessment. Furthermore, the changes to co-investment does not affect Levy paying businesses.
This is what is currently on the Government website:
"Non-levy paying employers will share the cost of training and assessing their apprentices with government - this is called ‘co-investment’.
For new apprenticeship starts from 1 April 2019, this co-investment rate is changing. You will pay 5% towards to the cost of apprenticeship training, and government will pay the rest (95%), up to the funding band maximum.
All apprenticeships started before 1 April 2019, will continue at the current co-investment rate of 10% until completion."
If you have any questions regarding the new changes to Apprenticeship co-investment, click here. Alternatively, you can contact our recruitment team on 0121 333 3001 who would be happy to answer any questions that you have.