Funding is available to contribute towards the cost of apprenticeships. The funding is different depending on whether you’re a non-levy payer or a levy payer.
Levy-payers
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 established by the Government to which they add 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.
Find out more about apprenticeship funding.
Non-levy payers
You will pay for 5% of the cost of the apprenticeship programme, up to the Government funding rate, and the Government will pay the rest of the cost to the learning provider. This payment will be divided by the number of months' training required (a minimum of 12) and the cost of the end-point assessment which is a maximum of 20% of the total agreed price allowed by the Government.
Non-levy payers can now access the government’s digital Apprenticeship Service. Find out more information on the benefits and how to access this on the Education and Skills Funding Agency website.
Levy fund transfers
A levy-paying employer can choose to donate up to 25% of their apprenticeship levy fund to any other employer, but this must be transfered within 24 hours who can then use it to fund learning and assessment of their apprentices. See full government guidance on transferring unused apprenticeship funds.
Watch The Education and Skills Funding Agency video to find out about the apprenticeship levy transfer, providing information for organisations wanting to transfer their levy or organisations looking to receive transferred levy funds.
If you are an organisation hoping to benefit from a levy transfer please read the 'Apprenticeship funding rules for employers'.
Funding to support functional skills
Health Education England is now funding social care providers to support study in functional skills. This software can help people to improve their own skills in maths (numeracy), English (literacy) and IT (digital skills). Any questions should be directed to hee@bksb.co.uk.