Apprenticeship
funding

Levy Paying Employers

If your annual payroll exceeds £3 million, as a levy-paying employer, you will contribute 0.5% of your total annual payroll into your Apprenticeship Levy account. These funds can be accessed through your Digital Apprenticeship Service (DAS) account to pay for apprenticeship training. Additionally, you have the option to transfer up to 50% of your levy to another employer (refer to Levy Transfer section).

Non-Levy Paying Employers

If you do not pay the apprenticeship levy you will be required to pay 5% towards the cost of training and assessing your apprentice. The government will pay the rest (95%) up to the funding band maximum. They’ll pay it directly to the training provider.

However, if your apprentice is aged 16-21 years old when they start their apprenticeship the government will fund all of the apprenticeship training costs, up to the maximum funding band.

Levy Transfers

Levy-paying employers can support apprenticeships by transferring up to 50% of their unused levy to another employer.

The transferred funds cover 100% of the training and assessment costs of the apprenticeship, up to the maximum funding band.

Transferred funds will cover the entire duration of the apprenticeship program.

If you are a levy-paying employer who is interested in transferring some of your levy to support small businesses - Transferring your apprenticeship levy to another business - GOV.UK (www.gov.uk)

If you are a non-levy paying employer who is interested in applying for a levy transfer - Receive a levy transfer from another business to fund an apprenticeship - GOV.UK (www.gov.uk)