Funding the Apprenticeship

How the government funds apprenticeships in England, including details of funding bands and the apprenticeship levy

Do you pay into the apprenticeship levy?

What is the Apprenticeship levy

A company with a payroll of more than £3 million will pay 0.5% of the pay bill into the apprenticeship levy. The apprentice levy can only be used for apprenticeships; however, this can be used for new or existing staff.

The levy is collected automatically through the PAYE with HMRC alongside income tax and national insurance. You can use your apprenticeship levy to recruit new staff or develop new skills for existing staff. The introduction of the apprenticeship levy has given employers better control on duration, training and assessments to get the perfect outcome.

Route map - How it works

How to set up and add apprentices onto the Digital Account

If you do not pay into the levy

If you are a small to medium enterprise or a micro company, then you can receive 95% of funding for apprenticeships. You can recruit new or train eligible existing members of staff and the government will pay 95% of the apprenticeship price. If you employ less than 49 members of staff and recruit a 16 – 18 year old the government will fully fund the apprentice.

As an SME/Micro employer, you will need to register with The apprenticeship service to allocate funding your apprentice. Here’s how

How to reserve apprenticeship funding on The Apprenticeship Service

Micro, small and medium enterprises now have access to The Apprentice Service, and are required to reserve funding for new starts on an apprenticeship Standard.
At The Grimsby Institute we want to be able to support you to use the service, and to be able to reserve and make optimum use of apprenticeship funding. We can reserve funds on your behalf, but in order to do this you must send us a request via an Apprenticeship Service account (TAS).

If you have any issues setting up an account, we would be more than happy to guide you through the process. Please contact Grimsby Institute Apprenticeship Team on 0800 012 6656.