Apprenticeship Funding

Apprenticeship funding helps employers invest in new talent and upskill existing staff.

Using both the Digital Apprenticeship Service (DAS) and the Apprenticeship Levy, you can access funding for training and assessment.

Digital Apprenticeship Service

As an Apprenticeship employer in England, you have access to the full benefits of the Digital Apprenticeship Service (DAS). This service allows you to control how you pay for Apprenticeship training, access grants and manage your Apprentices.

This step-by-step guide is designed to help you set up and use your account on the Digital Apprenticeship Service.

Download the Digital Apprenticeship Service guide

Download

Alongside the Digital Apprenticeship Service, employers may also need to understand how the Apprenticeship Levy works.

Apprenticeship Levy

The Apprenticeship Levy is a mandatory tax for UK employers with an annual wage bill exceeding £3 million. The levy is used to fund the expansion and development of the UK apprenticeship programme.

Levy Employers

The Levy (0.5% of pay bill) is paid through PAYE. It applies to all employers in all sectors.
Employers in England who pay the Levy are able to get out more than they pay into the Levy, through a 10% top-up to their digital accounts.

If your organisation pays the Apprenticeship Levy, your funds are managed through your Digital Apprenticeship Service (DAS) account, where you can allocate levy funds to training and manage payments to providers.

Find out more information for Apprenticeship Levy payers

Non Levy Employers

If your organisation’s annual wage bill is below £3 million, you will not pay the Apprenticeship Levy. However, if you plan to hire an apprentice, you may need to contribute towards the training and assessment costs.

For apprentices aged 22+, the government funds 95% of the training costs, and you as the employer will contribute 5%. This is known as co-investment.
Apprenticeship costs are 100% government funded for those aged 22–24 who have either an Education, Health and Care Plan (EHCP)
Apprenticeship costs are 100% government funded for those aged 22–24 who have been in the care of their local authority

For funding queries, please contact the Finance Apprenticeships team: FinanceApprenticeships@esc.ac.uk

Visit the government website to find out more about Funding an Apprenticeship For Non Levy Employers.

How levy funds are used

Digital funds and government funding can be used for apprenticeship training and assessment delivered against an approved framework or standard. This must be provided by an approved training provider and assessment organisation, and is funded up to the maximum of the relevant apprenticeship funding band.

What you can’t use funds for

Digital funds and government funding cannot be used for:

Wages
Travel and subsistence costs
Managerial costs

Traineeships
Work placement programmes
The costs of setting up an Apprenticeship programme

Need further help?

If you have any questions or would prefer to have someone talk you through the DAS or apprenticeship levy,, please contact Employer Services Team either by email employerservices@esc.ac.uk or call 01737 788316.

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