The rules around what you can (and can’t) claim are constantly changing so here’s our quick guide to show what apprenticeship funding is available and how to get it.
Remember all apprentices must be a direct employee of your company in order to get these grants.
For apprentices aged 16-18 when they start their apprenticeship you can claim £1,000 from the government. When your apprentice has been on their course for 90 days, this automatically prompts the ESFA to pay the first £500 incentive to the training provider. Payments are made around the 14th of each month. The training provider then has 30 days to pass this sum onto you. The same process applies for the second instalment of £500. The second payment of £500 will be triggered after 365 days, again the training provider 30 days to transfer funds. Ask your training provider to make sure you are set up for this.
Plan for Jobs incentives
If you took on a new apprentice before 31st January 2022 you may be entitled to upto £3,000 from the government. (No age restrictions apply). You can use the money for anything to support your organisation’s costs. For example, you can spend it on facilities, uniforms, the apprentice’s travel, or their salary.
Employers, both large and small, with new apprentices in England may apply. Employers can also get the incentive payment when they hire an apprentice who has been made redundant providing they are new to that organisation.
You get the payment in 2 equal instalments. You receive 50% after the apprentice completes 90 days of their apprenticeship. The remaining 50% is paid after the apprentice completes 365 days. To receive the full payment, the apprenticeship must last for at least one year.
The grant is avialable to new apprentices of any age who had an employment start date between 1 October 2021 to 31 January 2022. These apprentices must also have an apprenticeship start date of 1 October 2021 to 31 March 2022. Applications close 15 May 2022.
Again, this is one to ask your training provider about.
Ask about a levy transfer
If the apprentice is over 18 and/or you employ more than 50 people, then you will need to contribute to the training course costs. If you pay into the apprenticeship levy, then this can be used to pay for it. However, if you don’t, you can now apply to levy paying employers to transfer some of their funds to you.
Transfer funds are used to pay for apprenticeship training and assessment. They can be used for a new or existing employee that hasn’t already started an apprenticeship. You can find out what transfer funding is available here.
To apply for a transfer, you will need an apprenticeship service account. Your training provider can help you set this up or you can find more help here.
The maximum potential value of the available levy transfer for the financial year 2020-21, across all registered accounts on the Apprenticeship Service was £621m. Only 3.2% of companies used all or some of these available funds.
The funds are out there, you just have to ask.
These grants are only available to companies registered with the Construction Industry Training Board (CITB).
Registering with CITB is your choice, we recommend you click on the following link to decide whether you would like to do this, as some companies may need to pay into a Levy pot depending on your annual turnover.
If you decide to go down this route, the apprenticeship grant covers:
- off-the-job attendance with an approved apprenticeship provider of £2,500 per year, paid every 13 weeks and
- an achievement grant of £3,500 on completion.
Grants are for training and qualifications completed in the grants scheme year (1st April of the current year – 31st March the following year)
Only specific Level 2 or Level 3 Apprenticeships are covered and the training must be through CITB or a registered training provider.
For more information, please follow the link:
If you would like to make use of the funding available from CITB don’t forget that the claim must be received by CITB within 20 weeks of the start of the Apprenticeship.
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We want to build on our history of supporting apprenticeships and help in recruiting the next generation into the construction industry. So whether you are school leaver or a construction business looking for details about apprenticeships we hope this website will help you on your journey.
Construction is an ageing population and we all need to act now to make a difference.