Employers

Funding for Apprenticeships

Apprenticeships are backed by the UK Government and, as such, attract funding.

Funding is accessed by the employer and is dependent on how large the employer is.

There are 2 routes to funding:

Funding Route

• Levy funding
• Non-levy (co- funding)

Who is it for?

Employers whose annual payroll exceeds £3 million.

What does it provide?

Apprenticeship costs fully funded through the employer’s levy-pot (subject to sufficient funds being available).

Employer pays 5% of the costs of the apprenticeship – the government funds the remainder.
 

Are there costs to the apprentice?

There is no cost to the apprentice.

• In addition to the above funding models, there are additional incentives for employers who recruit and train 16-18 year-olds. (Or 19-24 year olds who have an educations, health or care plan or who have been in the care of the local authority.)
• Basic eligibility conditions apply for all apprenticeships.
• Our Business Development Team consultants are experienced and knowledgeable and can advise on all aspects of eligibility and funding. Contact them now for details of how you can engage with apprenticeships. 

Other sources of funding

In addition to government funding, employers within the sector may be able to access funding for training from the Skills for Care Sector Skills Council.

The sector’s own skills council can offer advice and guidance on all areas of training and development and provides various funding opportunities to support training and innovation within the sector.

Follow the link below to find out more:

https://www.skillsforcare.org.uk/Learning-development/Funding/Funding.aspx

Changes to The Apprenticeship Service 

In January 2020 the ESFA opened full access to the Apprenticeship Service. The DAS system (https://accounts.manage-apprenticeships.service.gov.uk/service/index) now includes support for smaller employers who do not pay the Apprenticeship Levy. These employers can reserve funds for Apprenticeships starting from January, February and March 2020 (to a maximum of three active reservations per employer).

The trial is still underway and remains in place up to and including the 31st March. However, all employers can now reserve funding for Apprenticeships starting in April 2020. During the transition the ESFA intend to continue allowing employers to reserve funding for three months ahead.

The ESFA will continue to monitor how the system is working. This includes keeping under review how their reservation policy is working. More information is available in the funding rules and the reservation policy, available on the ESFA website.

Smaller employers, who do not pay the Apprenticeship Levy can choose to work with all main providers who are listed on the register of Apprenticeship training providers (RoATP), not just those with an existing procured non-levy contract (if the provider also agrees).

As this is a test phase and a gradual transition bringing smaller employers on to the Apprenticeship Service, employers will still able to access training via existing procured non-levy contracts as the ESFA are extending these contracts to allow new starts beyond March 2020.

The two links below, give employers access to the funding rules and the reservation policy.

https://www.gov.uk/guidance/apprenticeship-funding-rules https://www.gov.uk/government/publications/apprenticeship-funding