The UK government’s apprenticeship funding system is designed to help employers invest in the development of their workforce. The system is based on a levy that employers pay on their payroll, which can then be used to fund apprenticeship training for their employees.

Who needs to pay the Apprenticeship Levy?

The apprenticeship levy is a 0.5% charge on an employer’s annual payroll, up to a maximum of £3,000 per year. Employers with a payroll of less than £3 million per year are not required to pay the levy.

As an employer, you have to pay Apprenticeship Levy each month if you:

  • have an annual pay bill of more than £3 million

  • are connected to any companies or charities for Employment Allowance purposes and have a combined annual pay bill of more than £3 million

You must report and pay the Apprenticeship Levy monthly through your Employee Payment Summary.

All sectors must pay the levy if they have an annual pay bill of over £3 million (including any connected companies or charities).

The sectors that have specific rules for paying Apprenticeship Levy are:

  • franchises

  • off-payroll working

  • short-lived companies

  • managed service companies

  • employment or recruitment agencies

  • joint ventures

  • schools

I don’t pay the levy, can I still access funding?

Even if an employer does not pay the levy, they can still access government funding for apprenticeship training through the apprenticeship service account. Employers can use their funds to pay for training and assessment for apprentices, and also for administrative costs. Here at Primary Goal we work hard to cover the 5%. We have commercial partners who are willing to gift the full funding amount to a small employer who doesn’t qualify for levy and those employers who have used their levy spend.

What are the benefits of the funding?

One of the key benefits of the apprenticeship funding system is that it allows employers to upskill their existing staff through apprenticeships, rather than just recruiting new apprentices. This means that employers can use the funding to develop the skills of their current workforce, rather than just training new hires.

How can I access the funding?

To access the funding, employers will need to set up an account on the apprenticeship service and register their apprenticeship training provider. They can then use their funds to pay for the training and assessment of their apprentices and invest in your staff professional development.

We’re here to help

Primary Goal is working with the West Midlands Combined Authority and wider authorities across the country to enable businesses to take advantage of corporate levy funding for their apprentice recruitment and upskilling of their existing staff in the areas of IT and Digital.

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Primary Goal aims for every learner to receive the highest quality learning experience, enabling personal growth and the opportunity for further career and study progression.