Apprenticeship Funding
Apprenticeship training can be used to up skill your existing staff members, who have a clear requirement for learning new skills, knowledge, and behaviours or can be used to recruit, and train new employees paid at least the apprenticeship wage. Levy funds and government contributions can only be used on apprenticeship training related to a specific apprenticeship standard and can only be delivered by a registered provider or establishment on the Register of Apprenticeship Training Providers. To access funds regardless of the size of your business, you must be registered on the apprenticeship service. Want to know more about what the apprenticeship service is? Watch this video:
Incentives:
Regardless of how you pay for your funding, you are entitled too further incentives for hiring an apprentice or upskilling your existing workforce:
- Employers will receive £3,000 for new employees of any age who start their apprenticeship from 1 April 2021 to 30 September 2021.
- You can apply for incentive payments for these apprentices from 1 June 2021.
What you can use the payment for:
The payment is different to apprenticeship levy funds, so you can spend it on anything to support your organisation’s costs. For example, on uniforms, your apprentice’s travel or their salary. You do not have to pay it back.
Eligibility
- You can only apply for new apprentices who joined your organisation between 1 August 2020 and 30 September 2021.
- You cannot apply for an existing employee who joined your organisation before 1 August 2020, even if they started an apprenticeship after this date.
Apprenticeships for large employers
The Apprenticeship Levy is a government measure introduced in 2017. Businesses that meet the qualification criteria have a legal requirement to pay into the Levy. The funds are paid in to the employers Apprenticeship Service account (AS) and once a provider has been selected the funds are transferred via this system in the form of an e-voucher.
How the Apprenticeship Levy is calculated
- UK employers with an annual PAYE bill of £3m or more pay the
- Apprenticeship Levy
- An annual allowance is deducted from the employer’s wages bill
- An amount equivalent to 0.5% of the employer’s total PAYE amount is then taken from the remainder
- This 0.5% amount is the
- Apprenticeship Levy payment payable by the employer
- The payment is deposited in an
- Apprenticeship Service Account
- The government applies a top-up of 10% to the funds available
- The Apprenticeship Service Account can be accessed to fund employee apprenticeship training only.
Apprenticeships for small employers
As a SME, there is a high likelihood that your business will not have to pay the Apprenticeship Levy, therefore here is how your funding is covered:
- The government will contribute 95% of the funding
- You will contribute 5% of the funding
Although you are not affected by the levy tax, you do still however need to access your digital account to reserve funds for training.
We can help you:
- Set up your apprenticeship service account
- Support you to reserve funds for training
- Fully managing your account if required and recommend any other providers that will meet your training needs
Watch this video here on how to reserve funds in your digital account.
Transferring apprenticeship funds
Since April 2019, levy-paying employers have been able to transfer up to 25% of their annual levy funds. Employers can transfer levy funds from their apprenticeship account to as many employers as they want.
Why Gift?
- Benefit local employers
- Support local skills gaps
- Use the funds you have acquired
- Build long term partnerships
UK Skills academy will support you with a free advisory service and manage this proves for you.
What does Levy funds cover?
Employers must be made aware of the followings prior to transferring or receiving any levy funds:
- Funds are paid monthly for the duration of the apprenticeship
- Only levy-paying employers can make a transfer
- Any employer can receive, and use transferred funds
- Employers must be registered on the apprenticeship service in order to receive or transfer levy funds
- A transfer can only be used to pay for training and assessment for apprenticeship standards
- Transfers can only be used for new starts
Although you are not affected by the levy tax, you do still however need to access your digital account to reserve funds for training.
The apprenticeship service calculates this by:
- The total amount of levy declared in the previous tax year
- With the English percentage applies
- Plus the payment of 5% from the government
To understand more please watch here:
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