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The cap of ten apprentices: what non levy paying employers need to know

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Updated: June 2022

The apprenticeship cap for non-levy paying employers was reset on 1 June 2022. This means that for non-levy paying employers, they are able to recruit up to 10 apprentices over the next year.

If your business doesn’t pay the Apprenticeship Levy you will have 95% of the cost of apprenticeships subsidised by the Government. From 1 June 2022 non levy paying employers are able to reserve funds for up to 10 apprenticeship starts. It had been due to be reset in April 2022, but wasn’t! It’s great news for non levy paying employers that the cap has been reset.

The reset of the cap gives employers more stability over the coming year, and the opportunity to plan to bring new talent into their business, or develop existing employees. Non-levy paying employers can plan to employ more than 10 apprentices. This article highlights some of the options if considering more than 10 apprentices.

What are your options as a non-levy paying employer?

As your business gets close to its cap of 10 new starts, there are still a number of options for funding further apprenticeships:

Use the levy transfer

Larger employers, who do not spend all of their Apprenticeship Levy, can choose to donate up to 25% of their unspent levy allocation to other organisations. This is seen as a method of supporting the skills within the industries they serve, to build a more robust talent pipeline across the sector.

Pay for the apprenticeship

An employer could pay the full cost of an apprenticeship, without any additional government subsidies.

This way, employees would still receive the additional support, guidance, content, and development our apprenticeships offer over and above the qualification. Helping to ensure they are fully supported in becoming well rounded professionals.

Pay for the qualification

An employer could look to pay for the qualification using their training budget.

However, this would mean the employees wouldn’t receive the additional skills and behaviours support, and development that our apprentices benefit from. There also wouldn’t be any additional Talent Coach support and guidance. But, learners and employers would still receive tutor and academic support.

Additional options

There are some further solutions that we could advise clients on, depending on their individual circumstances. Our knowledgeable team can help with this, but options could include: Encouraging employees to start on shorter, lower level qualifications at a discount or utilising our new CFAB school leaver programme.

These options would be used with the hope that in future the cap would be lifted and an employer could then choose to fully qualify staff through the level 7 apprenticeship with exemptions upon completion.

Are you getting close to your cap?

If your business is planning to recruit more than 10 apprentices we can advise on the most cost effective way of using your remaining allocation. The advice will vary depending on your situation and the apprenticeships you are considering, so we recommend speaking to us directly to discuss your specific needs.

It’s worth noting that the cap of ten includes any apprentices who may have left since they started the apprenticeship, and includes anyone who wants to progress to a higher level apprenticeship on completion.

Get in touch

If you would like to speak to our team and learn about the best options for your organisation, you can get in touch via our employer contact form.