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:


Regardless of how you pay for your funding, you are entitled too further incentives for hiring an apprentice or upskilling your existing workforce:

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.


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:

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:

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?

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:
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: 

To understand more please watch here:

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