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Funding

Apprenticeship funding

The Government introduced the apprenticeship levy in 2017 as a scheme to fund apprenticeships. Apprenticeship levy rules state that employers with a payroll of more than £3 million must pay a 0.5% levy on their total payroll, offset by a £15,000 government allowance. Levy contributions are paid monthly (alongside National Insurance and tax) through PAYE, and appear in a digital account which can be used by the employer to arrange and pay for apprenticeship training. According to the Levy rules, the funds can only be spent on apprenticeship training or End-point Assessment. Employers must declare the apprenticeship levy each month from the start of the financial year. After 24 months any unused levy funds expire and return to the government.

Non-levy paying employers can pay 5% of the apprenticeship course cost, and the government will cover the remaining 95% through the process of ‘co-investment’.

Help to pay for other costs

Currently, you can apply for an incentive payment of £3,000 for new apprentices who join your organisation.

To be eligible, the apprentices must both:

  • start their employment at your organisation between 1 October 2021 and 31 January 2022
  • start their apprenticeship between 1 October 2021 and 31 March 2022

Start your journey now

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