The Apprenticeship Levy

Apprenticeship Levy funding can only be used to recruit and train apprentices. A businesses that does not use or transfer their funding to another business, will lose access to it.

It is designed to benefit both small and large businesses, by nurturing new talent, which in-turn boosts the UK tech industry.

Employers with fewer than 50 people working for them are able to train, at no cost, apprentices aged 16-18 or aged 19-24 who have previously been in care or who have an Education, Health and Care plan. These employers are not required to contribute the 5% co-investment; instead, the government will pay 100% of the training costs for these individuals up to the funding band maximum.

Only businesses with pay a bill over £3m contribute to the Apprenticeship Levy, but the scheme can benefit businesses large and small.  

Levy paying businesses can manage and find out more information about their levy funds online.

Levy paying employers access their funds through the online Apprenticeship Service. The funds in their accounts are available to spend on apprenticeship training in England. The amount of funding that an employer paying the Apprenticeship Levy can access is linked to the value of their levy contributions, the proportion of employees living in England plus a government top-up.

Funds will be taken in month – and available to spend in the following. All payments will be ‘one month in arrears’. Employers will receive a 10% top up to monthly funds entering their Apprenticeship Service account.

All funds that appear in the Apprenticeship Service accounts of employers who pay the levy expire 24 months after they appear in the account.

If you have used all funds available in your Apprenticeship Levy, the 5% contribution will apply, requiring you to pay 5% of the total cost of any additional apprenticeships.

Levy paying employers will need:

An email address you have access to

The Government Gateway login for your organisation (or you can use the accounts office reference number and employer PAYE scheme reference number if your annual pay bill is less than £3 million)

Authority to add PAYE schemes to the account

Authority to accept the employer agreement on behalf of your organisation

A small employer who does not pay the Apprenticeship Levy can use the PAYE scheme reference number (also known as ERN number) and your account office reference number (AORN).

The Apprenticeship Levy programme began in April 2017, announced by the UK government as a way to help businesses deliver essential training and recruit new apprenticeship talent. Levy-paying businesses could originally transfer 10% of their funds to smaller businesses, but this was increased to 25% in 2019.

The training provider (QA) will be paid the agreed cost of the apprenticeship, up to the funding band maximum and will get:

80% of the cost in equal monthly payments throughout the apprenticeship

The final 20% when the apprentice completes their apprenticeship

Your training provider will receive Apprenticeship Service funds in equal monthly payments.