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Apprenticeships

Information for employers

What apprenticeships and the levy mean for your business, and how we can work with you when hiring an apprentice to maximise apprenticeship opportunities in your organisation.

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About Apprenticeships

Financial services apprenticeships are a great way for you to nurture your existing staff as well as to recruit new talent. Combining a mix of technical knowledge, professional experience and relevant work-based skills, apprenticeships  enable your employees to study towards sector-leading, recognised professional qualifications and degree programmes in banking and finance which are supported by the Government.

At The London Institute of Banking & Finance, we can work with you to co-design apprenticeship programmes, support your apprentices to study our qualifications and guide you through all aspects of the apprenticeship process.


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Read our Head of Apprenticeships, Karen Taylor’s, blog series bringing you up-to-date guidance, along with the latest goings-on and discussions in the world of apprenticeships.

Benefits of Hiring an Apprentice

 

Recruiting an apprentice is a productive and effective way for you to grow your talent and develop a motivated, skilled and qualified workforce. 

Key benefits for you as an employer:

  • Address skills gaps in your organisation and the sector as a whole
  • Improve employee retention by investing in the career development of your staff
  • Widen access to those who may not have previously considered a career in financial services
  • Increase staff job satisfaction, resulting in employees who feel supported and valued
  • Re-shape your workforce by attracting new, high calibre talent and up-skilling existing staff 
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Frequently Asked Questions

To meet the Government’s agenda and drive the increase in the number and quality of apprenticeships, the levy was introduced in April 2017 and is the biggest change to impact on the apprenticeship landscape.  The levy gives you control of your training and is creating employment opportunities nationwide. 

If you are an employer with an annual PAYE bill of over £3 million, you must pay a levy of 0.5%; this is taken on a monthly basis by HMRC and transferred into an employer’s account with the Digital Apprenticeship Service, topped up by the Government. 

The levy ‘pot’ can only be used to fund the training and assessment of apprenticeships (not the wages of apprentices) in England, with each apprenticeship standard sitting under one of 15 funding bands or caps, ranging from £1,500 to £27,000. Digital accounts are accessed online and used by employers to ‘purchase’ training programmes from a list of recognised providers, recorded in the Register of Apprenticeship Training Providers.  Levy payments expire after 24 months unless they are spent on approved apprenticeship schemes. In the event that there are insufficient funds in your digital account to cover the full cost of apprenticeship training and assessment, the government helps meet 90% of the additional costs.

Let’s assume that you have an annual pay bill of £8,000,000.

  1. Your levy sum will be 0.5% x £8,000,000 i.e. £40,000.
  2. All employers receive an allowance of £15,000 from the Government to ‘offset’ against payment of the levy.
  3. Your annual levy payment will, therefore, be £40,000 less £15,000 i.e. £25,000.
  4. In England, the Government provides a 10% ‘top up’ to an organisation’s monthly levy contributions, so for every £1 paid in, a business has £1.10 to spend.

In fact, less than 2 per cent of UK employers pay the levy. So, if your pay bill is less than £3m per year, you will not pay the levy.  In this case, at least 90 per cent of your apprenticeship training and assessment costs in England will be paid for by the Government. The Government will then ask you to make a 10 per cent cash contribution to the cost, paid directly to the training provider, with the Government covering the remainder (up to the maximum agreed funding band).

Apprenticeships are open to both existing staff and new recruits. An apprentice must be employed for a minimum of 30 hours per week, and be eligible to live and work in the UK.

There are several ways in which you can recruit a new apprentice to your organisation.  You could advertise through the same media that you’d use to find other employees, as well as using specialist apprenticeship websites. You could also try contacting your local schools or colleges, and we can support you to identify school outreach channels. 

 

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