The information on this page is for England only, if you have questions about apprenticeship funding in Scotland Wales or Northern Ireland please contact our Business Development Team. For End Point Assessment fees please see our EPA Tariff, which can be found on our individual EPA pages.
Employers with a pay bill of £3 million or more will pay an apprenticeship levy. Using the Apprenticeship Service the can access these funds for apprenticeship training and development in their own organisation. If they do not use the levy funds within two years then it goes back to the Government. However, if they use all their levy and want to train more apprentices, they'll pay for them using the same model as an SME.
The levy is collected by HMRC via the PAYE process. There is a £15,000 allowance and the Government will top-up monthly funds for apprenticeship training by 10%. No employer is exempt.
Employers control where they spend their apprenticeship funding. The providers will get that money through their monthly Individualised Learner Record (ILR) return.
Non-levy paying employers
SMEs with a pay bill under £3 million contribute 10% of the total apprenticeship cost and the Government pays the remaining 90%. The same model is used for levy-paying employers who have exhausted their levy funds.
Businesses with fewer than 50 employees, training 16-18 year-old apprentices will receive 100% of the funding from the Government.
More information regarding the levy and employer contributions can be found on the gov.uk website.
What is the Apprenticeship Service?
The Apprenticeship Service is a government portal for employers to:
Login or sign up to the Apprenticeship Service.
Apprenticeship Funding Bands
There are 30 funding bands available from £1,500 - £27,000. Each band is the maximum funding amount the Government believes is required for training and assessment of apprentices. However, the funding band maximum is not the funding rate. Employers should negotiate with training providers and EPAOs and agree on a suitable price. If the costs of training and assessment go over the funding band maximum, employers will need to pay the difference with other funds.
Math & English Funding
Depending on prior achievements and the requirement of the standard apprentices must be given Maths & English support.
This is not funding via the levy, but funding by the Government directly to training providers. Find out more about 16-19 Learning & Skills Funding, and the Adult Education Budget which can be utilised for Maths & English.