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  • Employers: funding information

Employers: funding information

Businesses of all sizes are now able to access funding for apprenticeships.

The basic details of apprenticeship funding and grants are outlined below. Please check our blog for more detailed guidance on funding, including for our new levy transfer scheme.

 

submit an enquiry

Funding

Levy paying organisations

The levy is paid by large employers with a pay bill of over £3 million (they pay 0.5% of their total annual pay bill).

Levy paying employers access their funds through the Digital Apprenticeship Service. The funds in their accounts are available to spend on apprenticeship training in England.

Employers have 24 months to use their funds once they enter their apprenticeship service account, after this point, their funds will expire. The funds expire to encourage levy paying employers to invest in high-quality training and assessment

Find out more about the apprenticeship levy.

Reserving funding for SMEs

Smaller employers that do not pay the apprenticeship levy can now reserve apprenticeship funding for training and assessment in their Digital Apprenticeship Service account.

The funding will cover 95% of the cost of the apprenticeship (up to the funding band maximum), smaller employers will need to pay the remaining 5% directly to the training provider. The 95% funding is paid directly by the Government to the training provider. This is also called ‘co-investment’.

From 15 July 2020, the number of reservations available to non-levy paying organisations will increase from 3 to 10. This policy will be reviewed at the end of funding year 2020-21 to assess how the new system is working.

Find out more about reserving funding.

Levy transfer

Levy paying organisations are able to transfer up to 25% of their funds to other employers; this should cover 100% of training and assessment costs for the receiving employer. These funds cannot be used for anything else.

Find out more about levy transfer.

University of Brighton Levy Transfer scheme

To apply for levy transfer funding under this scheme, you must be one of the following: 

  • An alumni business or organisation 
  • An organisation seeking to employ a Brighton alumnus as an apprentice 
  • A small or medium sized employer (SME) or voluntary, community and social enterprise (VCSE) based in East Sussex, West Sussex or Brighton and Hove

Please read the full guidance before applying for this scheme.

To apply please download and return this form to apprenticeships@brighton.ac.uk.

 

Incentives

Hiring a new apprentice

Apprentices who joined your organisation from 1 April 2021

Employers will receive £3,000 for new employees of any age who start their apprenticeship from 1 April 2021 to 30 September 2021. This can be applied for from 1 June 2021.

There will be no limit on the number of incentive payments that an employer can claim for apprentices eligible to receive funding, provided each apprentice meets the criteria, including being a new employee.

Find out more about incentives for hiring a new apprentice.

Apprentices who joined your organisation before 1 April 2021

There will be two levels of payment based on age. For apprentices aged 16-24 the payment will be £2,000, and for apprentices aged 25 or over the payment will be £1,500. 

Employers must apply for these apprentices before 31 May 2021.

Small businesses

The Government will pay 100% of apprenticeship costs for employers with fewer than 50 employees who wish to employ a 16- to 18-year-old or an eligible 19 to 24- year-old as described in the Funding Rules.

Find out more about support for small employers.

Apprentices under 19

If you employ a 16 to 18-year-old apprentice into your organisation you can claim a £1,000 investment grant to support the employment of your apprentice. This support is also available to support eligible 19- to 24-year-old as described in the Funding Rules.

Find out more about grants for apprentices.

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