Funding
Understanding funding and support for Apprenticeships
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We offer a wide range of free of charge support and information services
Funding in England
Funding for Apprenticeships
Funding for Apprenticeships is split between two types: an Apprenticeship Levy and a Co-Investment Arrangement.
When you contact SR Apprenticeships, our specialist team will be able to discuss your unique needs and advise the best way in which your Apprentices will be funded and any additional support that is available to your company.
How does the Levy Allowance work?
Apprenticeship Levy: Annual Bill of more than £3 million.
As an Employer with an annual pay bill of more than £3 million, you spend 0.5% of your total pay bill on the Apprenticeship Levy which is reported and paid to the HRMC via the PAYE process.
You receive a ‘Levy Allowance’ of £15,000 per year, meaning that the total amount you need to spend is 0.5% of your pay bill, minus £15,000.
- Employers who pay the Levy have an allowance of £15,000 to offset their Levy
- Any organisation paying into the Levy needs to utilise Apprenticeships for existing Employees or new recruits to make use of their Levy
- The Levy is paid monthly via PAYE
- The Government provides a 10% top up on a monthly basis
- The Levy can only be used to fund Apprenticeship training and assessment with an approved training provider and assessment provider
- Funds expire 24 months after they enter the Levy digital account, if you do not use them you lose them
- In certain circumstances, unused Levy funds can be transferred to support small non-Levy paying Employers to deliver Apprenticeships
Government Apprenticeship Incentives
The Government provides various incentive plans for Employers to encourage the hiring of Apprentices. For example, Employers can get £1,000 for Apprentices aged 16-24 or 25 and over with an education and health care plan.
From time to time the Government introduces additional support and incentives for Employers. Currently the Government has introduced incentives of up to £2,000 to support Employers who hire new Apprentices, including redundant Apprentices. This is only available for a limited time with the scheme ending on 31st March 2021.
Get in touch to find out the latest news on this support and what it means for your business.
Non-Levy Employer Funding
Co-Investment Arrangement:
Annual Pay Bill of less than £3 million.
If you’re an Employer of less than £3 million then you are entitled to the Co-Investment Arrangement in which 95% is Government funded and 5% Employer funded. However, there is a 100% Government contribution for small Employers who take on an Apprentice aged 16-18, 19-24 care leavers, or 19-24 with an education and health care plan.
- Be a citizen of the UK (or EEA) or have the right of abode in the UK
- Be working within a job role relevant to that of the qualification they wish to undertake (they may be given the opportunity to be exposed to activities if not in the current role)
- Be working a minimum of 30 hours a week (if working part time, for example a 25 hour week, the length of the programme can be extended. Assessed on a case by case basis)
- Be paid a minimum of the Apprenticeship Minimum Wage
- Be working towards achieving an approved Apprenticeship standard (can not be on any other Apprenticeship standard at the start point)
- The Apprentice must showcase that they are spending 20% of their time off-the-job training
Funding and Eligibility
Requirements for a funded Apprenticeship
