This depends on the amount of funds you have in your levy ‘pot’, and the Apprenticeship you’re considering. Each Apprenticeship has a maximum ‘funding band’ which outlines the cost of each Apprenticeship. You can find the full list on the Education & Skills Funding Agency website:https://www.gov.uk/government/publications/apprenticeship-funding-bands
Non-levy paying employers will share the cost of training and assessing their apprentices with the government. This is called ‘co-investment’. In practical terms, this means that the employer will pay 5% towards the cost of apprenticeship training, and the Government will pay the rest (95%), up to the funding band maximum.
Your levy funds can only be used to pay for apprenticeship training and assessment up to the funding band maximum. If the cost of training and assessment go over the funding band maximum, you will need to pay the difference with other funds from your own budget. You can’t use funds in your account to pay for other costs associated with your apprentices such as wages, licenses to practise, travel and subsidiary costs, work placement programmes, or the setting up of an apprenticeship programme.
Apprenticeship service to receive levy funds and pay your provider. You will see funds entering your account each month after you have declared the levy to HMRC, and funds leaving the account each month as you pay for training.
If you don’t have enough funds in your account to pay for training in a particular month, you’ll be required to share the remaining cost of training and assessing your apprentices for that month with the government. During this period, you will enter into ‘co-investment’ with the Government and will be required to pay 5% towards the outstanding balance for that month, and the government will pay the remaining 95%, up to the funding band maximum.
We understand it can be confusing getting to grips with introducing an Apprentice into your business – but don’t worry, we’ve done it many times before, so if you still have questions or just want to chat something through, get in touch. We’re always happy to help.Contact
Just to let you know, funds you don’t use will expire 24 months after they’ve entered your account. For example, funds entering your account in September 2020 will expire in September 2022. Payments from your account to your training provider always use the oldest funds first – but don’t lose it…. Talk to us and see how you can make the most of your investment.
If you think you may have an amount that is near expiry, contact us and we‘ll hep you ensure none of your valuable contributions are wasted.