The Levy
The way the Government funds apprenticeships in England has changed. Download 5 is a GTC handout which explains these changes. To download more information sheets regarding apprenticeships and funding please use this link.
If you’re an employer with operations in Scotland, Wales or Northern Ireland, you may also want to contact your apprenticeship authority:
- C&G provide help on apprenticeship funding too
Apprenticeships policy and funding – What you really need to know
The funding for new apprenticeships in England began after May 2017 with the employer paying 10% and the government paying 90%. This is called Co-investment. From 1st April 2019 the rate of co-investment will be reduced to 5% for all new apprenticeship starts, with government funding of 95% provided to cover the remaining costs.
The apprenticeship service as an employer
Registration for the apprenticeship service is open all levy-paying employers. Find out here how to register and how it works.
The apprenticeship service is being opened to employers who do not pay the Levy but for now please refer to the information in Download 20: Apprenticeship funding for Employers who do not pay the Levy.
Employers that DO NOT pay The Levy
For the latest funding information please read Download 20: GOV.UK have added the new document: apprenticeship funding for employers who do not pay the apprenticeship levy. This outlines changes to the way employers who do not pay the levy arrange their apprenticeships.
A full technical guide has also been published by the government:
Apprenticeship Technical Funding guide from August 2020
Employers may find this information useful to help understand how employer accounts on the apprenticeship service operate or how government and employer co-investment will operate.
City & Guilds also publish an update on funding page on their website that you may want to visit for further information:
https://www.cityandguilds.com/delivering-our-qualifications/funding/updates
All employers: What can you spend apprenticeship funding on?
Funds can be used for:
Funds in your apprenticeship service account, and funding provided by the government through co-investment, can only be used towards the costs of apprenticeship training and end-point assessment. This must be with an approved training provider and approved assessment organisation.
Funds cannot be used for:
Funds can’t be used on other costs associated with your apprentices or wider training effort. For example wages, statutory licences to practise, travel and subsidiary costs, managerial or brokerage costs, traineeships, work placement programmes or the costs of setting up an apprenticeship programme. You can find more detail of what can be funded in the ‘apprenticeship funding rules’.
