Funding and the Levy

Government support through incentives

As part of the Government’s drive to protect employment and opportunities for young people there are incentives for employers who employ new apprentices.

For each new apprentice aged 16 to 18 and those under 25 with an Education, Health and Care Plan (EHCP), you will receive £1,000.

In order to reserve your funding and claim your incentive, you will need to create a Digital Account. Accessing the Digital Apprenticeship Service is simple, just visit: and follow the easy steps to get started. Once registered we can help you further with managing this process.

The Apprenticeship Levy

Employers with a wage bill in excess of £3m are required to contribute to the Apprenticeship Levy.

Levy-paying employers

  1. Your total levy payment = 0.5% of your total payroll bill (less a £15,000 levy allowance). You then receive the same amount back in the form of digital vouchers.
  2. The government will apply a 10% top-up to your levy fund each month.
  3. You pay 100% of the cost of the apprenticeship(s) using your digital vouchers.
  4. You'll need to register for an Apprenticeship Service (AS) account. This online tool allows you to:
    • Choose the apprenticeship standard
    • Choose the training provider(s)
    • Choose an assessment organisation
    • Post apprenticeship vacancies
    • Track the funding you have spent and have available
    • Set the price agreed with their chosen provider
    • Pay for the apprenticeship training and assessment
  5. Negotiate a price with your chosen provider(s) and pay 100% using your digital vouchers.
  6. Hire your apprentice(s).

Non-levy paying employers

  1. You do not have to pay anything towards the apprenticeship levy.
  2. You will be required to set up a Digital Account to reserve your funding and incentives. New College Swindon can assist you with this.
  3. Choose your training provider(s) and work with them to:
    • Choose the apprenticeship standard
    • Agree a price for the apprenticeship training and assessment
  4. Use the ‘Co-Investment Scheme’ to pay for your apprenticeship. After negotiating a price with your chosen provider(s), you will have to pay 5% and the government will pay the other 95%.
  5. Hire your apprentice(s).

Additional funding opportunity for small employers

If you have less than 50 employees and you employ an apprentice aged 16-18 years old, then the apprenticeship is fully funded by the government.

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