The Government is committed to funding a wide range of apprenticeships, including higher and degree level apprenticeships, offering education right up to Masters degree level.
Levy paying organisations
Larger employers have been paying a levy of 0.5% of their payroll bill to create a £3 billion funding pot to use exclusively for apprenticeships.
Employers can draw down the full value of their contribution – plus a 10% top-up donation from the Government - which can be used to pay for apprenticeships through a digital account called the ‘Apprenticeship Service’.
Use it or lose it! Levy funds expire if they are not spent within 2 years. A firm paying a £100k levy per year could recoup the full value with just four degree apprenticeships.
Apprenticeship levy funds can only be spent on apprenticeships and cover the costs of training, assessment and certification. Employers themselves pay the apprentice’s wages.
Non-levy organisations, typically smaller employers, are able to access funding at a 95% funded rate. Larger organisations can also transfer unspent levy to smaller organisations.
From January 2020, all organisations can access the ‘Apprenticeship Service’ to create an account and ‘reserve’ funding for apprenticeship programmes. Employers can have up to three active reservations at any time and must reserve funding in the three months prior to the start of the programme (reservations expire after three months). More details on how to register for the service and find apprenticeship programmes is available here. The Education and Skills Funding Agency have published some useful videos:
How to set up an account and agree to the ESFA 'Employer Agreement'
How to reserve funding, add an apprentice and use the recruitment tool
Additional incentive payments may also be available depending on eligibility.
For more information on programmes and funding available, please contact our Skills and Apprenticeships Service on 01482 466373 or email@example.com