How funding for higher and degree apprenticeships works
Overview of how funding works
For the most up-to-date authoritative information on apprenticeship funding, we recommend consulting the official government guidance directly.
Here is how the funding for higher and degree apprenticeship works for both levy and non-levy paying employers, as applied to apprentices aged 19 years and over. Higher and degree apprenticeships can be a highly cost-effective way to train existing staff, hire the best and brightest new employees, and plug skills gaps in your organisation.
Depending on the size of your payroll bill, the fees for putting an employee through one of our higher or degree apprenticeships will be either:
(a) 100% covered by the apprenticeship levy or
(b) 95% funded by the government (formerly 90%)
*Subject to ESFA confirmation of start date.
All levy and government funding is subject to funding band maximums.
To find out how apprenticeship funding will work for your organisation, scroll down or click on the relevant link:
We have a payroll bill of OVER £3m
1. We have a payroll bill of OVER £3m
If your pay bill is over £3m, your organisation will already be paying the apprenticeship levy. This recently introduced tax equates to 0.5% of your pay bill over £3m.
The funds generated from your payments, along with a government top-up, go into your organisation’s digital apprenticeship service account.
If you’ve found a suitable apprenticeship at the University of West London, the good news is that the money in this account can be used to cover 100% of our fees.
How much is available in your account? In the government’s words:
The amount of funding that an employer paying the levy can access is linked to the value of an employer’s levy contributions, the proportion of employees working in England and a government top-up.
Access your digital account to view and access your funds or learn more from the government website.
Please note that funds from the levy only cover apprenticeship tuition and assessment. Your apprentice’s salary, for example, remains the direct responsibility of you as an employer.
Sharing the levy
If you are in a group of companies that pay the levy, you have the option of pooling your funds in a shared apprenticeship account. Levy-paying employers will be able to transfer up to 25% of the annual value of funds entering their apprenticeship service account.
You can find detailed information about transferring your apprenticeship funds here.
We have a payroll bill of UNDER £3m
2. We have a payroll bill £3m or less.
As an employer with a payroll bill of £3m or less, you do not pay the Apprenticeship Levy.
Instead, by working with an approved training provider such as UWL, you can share the cost of training and assess your apprentice with the Government.
You will pay just 5% of the total agree price with the Government covering the rest. This is called ‘Government Co-investment.’
Reserving funds from the Government for your apprentice.
- It is very important that you reserve the 95% funding from the Government by registering on the Government website.
How funding works and guidance for non-levy reserving of funds.
- Find out more via the Government website.
How to register and use the apprenticeship service as an employer
- Find out more via the Government website.
Please note, funding must be reserved before the apprentice starts their apprenticeship. Funds are only valid for three months following the reservation.
Finally, to cover your 5% apprenticeship training and assessment contribution, your organisation will be set up on UWL’s finance system and be invoiced the agreed amount.
Funding bands
Funding bands
You may have seen the expression ‘subject to funding band maximums’ in your research.
This refers to the 15 bands into which all approved apprenticeships in England fall. Note however that the government has announced that the number will double to 30 funding bands from August 2018.
The upper-limit of these bands ranges from £1,500 to £27,000, and will remain so after August 2018. This number represents the maximum amount the government will commit to pay for an apprenticeship.
The fees for all of UWL’s higher and degree apprenticeships fall within their assigned bands.
In the case of levy-paying employers, this is subject to enough overall funds being available in your apprenticeship account, which you can check online.
See the official information about funding bands here.
Please call Janet Rowson on 020 82312607 or email janet.rowson@uwl.ac.uk if you would like to know more about funding for your higher or degree apprenticeship.
Contact us
To find out how we can support your business, contact Janet Rowson, Head of Degree Apprenticeships at the University of West London.
- Phone 020 8231 2607
- Email janet.rowson@uwl.ac.uk
