How are apprenticeships funded?

The Apprenticeship levy

Employers with a total wage bill in excess of £3million per year will pay the levy automatically through PAYE. Funds are held in your organisation’s digital account and can only be used to fund Apprenticeship training. Funds must be used within 24 months of entering your account, or they will be clawed back by the government. If an Employer has insufficient funds to pay for all the required training within their digital account, the government will fund the additional costs at 95%, to top up the 5% paid by the employer.

Levy paying organisations can transfer part of their Levy fund to smaller organisations.

Non levy paying organisations

Organisations with a wage bill less than £3 million will not pay in to a levy account. These employers will co-fund Apprenticeship costs paying 5% of the cost of the training with the government paying 95%.

Large Levy paying organisations can transfer part of their Levy fund to smaller organisations to use.