Employer apprenticeship contribution to drop from 10 to 5 per cent

The Chancellor of the Exchequer has announced a change to apprenticeship funding, aiming to encourage small and medium sized businesses to invest in apprenticeships by reducing employer contribution to 5%. The reforms were confirmed by Philip Hammond in the Spring Statement, after they were initially unveiled last October.

Non-levy paying companies currently have to contribute 10% towards apprenticeship training, however from 1st April 2019 this figure will be halved to 5% as part of a £700 million package of reforms. The 5% contribution will apply to all new apprenticeship starts after this date, with government funding of 95% available to cover the remaining costs.

An assessment of individual sector values will take place separately.

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