If you’re a UK employer with an annual payroll of more than £3m, you must pay a levy which can only be used for the training and assessment of apprentices in your organisation. You’ll fund your apprenticeship through a digital levy account to which Government adds 10%. If the cost exceeds the credit in your account, the Government will contribute 95% of these extra costs. If you don't choose to use your levy or donate it the government will reclaim it after 24 months.
Download our levy paying employer’s journey to apprenticeships.
If you’re a non-levy paying organisation, you’ll pay for 5% of the cost of the apprenticeship, up to the Government funding rate, and the Government will pay the rest of the cost to the learning provider. This resource maps out non-levy paying employer’s journey for apprenticeships.
Non-levy payers can now access the government’s digital Apprenticeship Service. For more information on the benefits and how to access this go to Education and Skills Funding Agency.
A levy-paying employer can choose to donate up to 25% of their apprenticeship levy fund to any other employer who can then use it to fund learning and assessment of their apprentices. Full government guidance on transferring unused apprenticeship funds is outlined here.
The Education and Skills Funding Agency has created a useful video all about the apprenticeship levy transfer, providing information for organisations wanting to transfer their levy or organisations looking to receive transferred levy funds. Click here to watch the video.
Hoping to benefit from a levy-transfer?
If you are an organisation hoping to benefit from a levy transfer please read the 'Apprenticeship funding rules for employers'.