Funding and the levy

A maximum cost is assigned to the apprenticeship standard overall rather than per component element, so there is more freedom in the make-up of the training.

As an employer of apprentices, you'll either be a levy payer or non levy payer. In April 2017, the Government introduced changes to funding which are dependent on an organisation's payroll. If you're a UK employer with an annual payroll of more than £3m then you'll need to pay a levy which you can only use for the training and assessment of apprentices in your organisation. 

Non levy payer

As a non levy payer, you'll agree a price with the learning provider and then pay for 10% of the cost to your learning provider and the Government will contribute the rest of the cost and pay the learning provider.

Levy payer

If you're a levy payer this will work differently as you'll fund your apprenticeships through a digital account. 

All employers

For all employers, there is also a system of incentive payments if:

  • you are a small organisation
  • employ 16-18 year olds
  • employ a care leaver
  • and also upon completion.

In some cases these incentive payments may be more than your original cash contribution.

NEW: Levy fund transfer

Preparations are underway to allow levy paying employers to choose to transfer their levy funds to another employer. This comes into effect on 1 April 2018 - the full guidance is available at transferring-apprenticeship-service-funds

A few key points:

  • the transfer is limited to 10% of the value in the Apprenticeship Service account (ie the English value plus the 10% top-up – so removing the proportion for Wales/Scotland and NI).
  • the funds can't be refunded once transferred.
  • the receiving employer has to enter the apprentices details and have an account on the apprenticeship service.
  • transferred funds can ONLY be used to pay for apprenticeship standards.

For the latest update from the Education and Skills Funding Agency click here

Explore the two journeys:

Your questions answered

More places to get funding information

For the most current funding information go to: https://www.gov.uk/government/collections/apprenticeship-changes

For the most current levy information: https://www.gov.uk/guidance/pay-apprenticeship-levy

Funding calculators 

There are some useful funding calculators that have been developed to help you work out costs for your organisation:

Workforce Development Fund (WDF)

The Workforce Development Fund (WDF) is funding from the Department of Health and Social Care which is disbursed by Skills for Care. It’s a limited pot of money which funds qualifications, units and learning programmes to support the ongoing professional development of staff across adult social care in England.

Our WDF can be used by you to help fund the delivery of apprenticeships in adult social care.