If you’re considering apprenticeship training for your organisation, know the costs involved and the funding available, is key.
As a leading apprenticeship provider, we’re here to guide you on apprenticeship funding bands and the funding you can access for the training and assessment of your apprentices.
First of all, it’s helpful to understand what an apprenticeship standard is. Essentially, a standard is a nationally recognised programme that defines the knowledge, skills, and behaviours that an apprentice must demonstrate to be fully competent in their specified job role.
What are apprenticeship funding bands?
Apprenticeship funding bands were first introduced in 2017, along with the introduction of the apprenticeship levy. They’re a set of upper limits that will determine the maximum amount of money the government will contribute towards the training and end-point assessment of a specific apprenticeship standard.
Every apprenticeship standard, such as business administration or travel consultant, is assigned a funding band that ranges from £1,500, all the way up to £27,000. You can talk to individual providers to find out their costs, but most providers do charge at the maximum band for the majority of their apprenticeship provision.
However, as an employer, these are generally not costs that you would have to outlay:
- If you’re a levy-paying employer: The funding band determines the maximum amount of funds you can use from your levy pot to pay for an individual apprentice’s training
- If you’re a non levy-paying employer: The funding band sets the maximum price the government will co-invest towards the apprenticeship – for apprentices under 22, the government funds 100% of the apprenticeship; for apprentices 22 and over, 95% government funding is available.
Specific apprenticeship funding bands
- Band 1: £1,500
- Band 2: £2,500
- Band 3: £4,000
- Band 4: £5,000
- Band 5: £6,000
- Band 6: £9,000
- Band 7: £12,000
- Band 8: £15,000
- Band 9: £18,000
- Band 10: £21,000
- Band 11: £24,000
- Band 12: £27,000
How are the bands determined?
The assignment of funding bands by Skills England is a rigorous process that considers a number of factors, such as:
Duration, level and complexity: The level of apprenticeship, length of programme and complexity of skills being taught are key factors. Apprenticeships that require a significant amount of off-the-job training and involve the development of advanced technical skills will have a higher funding band to reflect the investment required.
Training and assessment costs: End-point assessments are completed by independent bodies, and these costs are taken into consideration. Skills England would also take into account whether the provider would need specialist equipment or materials in order to deliver the training.
Sector requirements: In some sectors, specific regulatory requirements may result in the allocation of a higher funding band.
Marketing testing: Before a funding band is approved, it is tested with providers to ensure the apprenticeship can be effectively delivered within the band. This helps to set a realistic and fair level of funding that can encourage a wide range of providers to offer the apprenticeship.
What isn’t included in the funding bands?
While funding bands cover the costs of the apprenticeship training and assessment itself, there are some elements that are not covered within the band, and therefore cannot be paid for out of a levy pot or through government funding. These include:
Wages: The funding band does not contribute to the apprentice’s salary. As the employer, you are responsible for paying your apprentice at least the minimum wage for apprentices.
Functional skills: If your apprentice requires functional skills training, the provider will be able to draw down additional funds. As an employer, you’ll have no additional costs for this type of training.
Any additional qualifications: Some providers may offer additional courses and training that run alongside the apprenticeship, and incur costs outside the funding band.
Invest in your team with the help of Damar
Now that you’ve learned more about apprenticeship funding bands, consider investing in the future of your workforce! Apprenticeships are a powerful tool for developing talent and understanding the financial support available is the first step.
At Damar Training, we have a 45-year history of working with employers of all sizes to help them navigate the world of apprenticeships. We’re there to guide you through the funding process and support your business goals.