Posted by on Feb 8, 2014 in Front Page, Mobile | 0 comments


I’m an employer looking at taking on an apprentice, am I eligible to receive a 16 – 18 incentive payment?

The apprenticeship payment has now changed and it is now called the ‘incentive payment’.  Since the 1st May there are several new updates that all employers must take into consideration before receiving the new payment if eligable.

If you are looking at taking on an apprentice who is aged between 16 and 18 you will receive an incentive payment for doing so.  The payment is payable in 2 installments with the first £500 being paid after 3 months and the remaining £500 after 12 months.  However the last payment will only be paid as long as the apprentice is still on their apprenticeship.  The payment will be made directly from the training provider.

The £1000 incentive payment is there to help meet the extra costs of employing them.


Is there a cost for the apprenticeship training for a 16-18 apprentice?

If you are an Small to Medium Employer (SME) with an annual wage bill of less than £3 million then your classed as a ‘non levy’ paying employer.  A non levy paying employer therefore has to contribute 10% of the overall training cost with the government paying the remaining 90%.  The cost includes the apprenticeship, the new standards and the end point assessment.

However, if you have less than 50 employees there is no cost to an employer for taking on a 16-18 apprentice.  So the apprentice will have to be either, less than, or the 49th employee.

If you have an annual wage bill of over 3 million then you are classed as a ‘levy paying’ employer and costs are payable.

Both Levy and Non Levy paying employers and the contributions required are discussed in the relevant sections of the website with full details.


I’m an employer – Do I have to pay for my existing staff to receive apprenticeship training?

All Levy and Non Levy paying employers have to pay for existing staff to receive apprenticeship training.  Non Levy paying employers have to contribute 10% to the overall cost of the training while the Government invests the remaining 90%.

The 10% employers contribution has to be paid either upfront, or if preferred, over a 10 month period of equal monthly payments to the training provider.  This is discussed prior to the employee starting the training and contracts being drawn up.  Once the initial payment has been received by the training provider the training can commence.  The Government investment is drawn down each month by the training provider as required.

For Levy paying employers the whole training cost is payable and they have to pay 0.5% of their annual wage bill (which will be over £3 million) to the HMRC each month and this is placed into their levy online digital account.  The full 100% of the training costs are then payable from this digital account.  All training costs are paid on a monthly basis to the training provider directly while the employee is receiving training.

Both Levy and Non Levy paying employers and the contributions required are discussed in the relevant sections of the website with full details.


As a potential apprentice – Am I too old to take an apprenticeship?

The short answer to this is no – there is a minimum age of 16, but you could be 17 or 70 taking on an apprenticeship should you wish.

Let’s talk money – how much do apprentices earn?

During the 1st year of an apprenticeship you will have to be paid atleast the national minimum apprenticeship wage of £3.50 per hour, however many employers pay more than this depending on the role and apprenticeship offered.  After you have successfully completed your apprenticeship programme, your employer must pay you the National Minimum Wage depending on your age.  The current rates are:

  • £7.50 per hour – 25 yrs old and over
  • £7.05 per hour – 21-24 yrs old
  • £5.60 per hour – 18-20 yrs old
  • £4.05 per hour – 16-17 yrs old
  • £3.50 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.


What is Functional Skills and why do all Apprentices need to complete it?

Functional Skills will provide an apprentice with practical skills in English, ICT and Maths which will help them to ‘function’ confidently in work and life in general. They have been developed in response to the employability needs set out by the Government

The expected benefits of improved communication, number and information & communication technology (ICT) skills are:

  • improved quality of performance
  • increased staff retention giving lower recruitment costs
  • higher qualification achievement rates and general skills development
  • improved health, safety and risk management


If you have any further questions or they are not covered in our FAQ, don’t hesitate to contact us:

01983 533993 or email us at info@carelearningcentre.co.uk