Degree Apprenticeship funding for employers

Find out what you need to know when it comes to funding and Degree Apprenticeships.

What funding is available to employers?

If your company is paying the apprenticeship levy (see details below), you can use these funds to cover Degree Apprenticeships. The cost of the training depends on the apprenticeship level and industry sector, take a look at the funding band maximum for further information.

Additional payments

Both levy and non-levy paying employers can benefit from additional payments to support their apprentices in the workplace. Employers who recruit an apprentice aged 16 to 18, or an apprentice aged up to 24 who has previously been in care or has a Local Authority Education, Health and Care Plan, will receive an additional payment of £1,000.

If you are not paying the apprenticeship levy you will be eligible to receive 90% contribution towards the training costs associated with your Degree Apprenticeship.

What is the apprenticeship levy?

The government has introduced a levy on larger employers to fund apprenticeships. If your company’s wage bill is over £3 million your company will pay the apprenticeship levy of 0.5%.

Administered by the Digital Apprenticeship Service, the levy will be collected from the PAYE system and will apply to both public and private sectors across the UK. The levy payments are held in your Digital Account. Each month's fund must be used within 24 months. Levy-paying employers can manage their apprenticeship funds by registering for the apprenticeship service.

If your company’s wage bill falls below this limit, you will not pay the levy but you will still be eligible to receive 90% contribution towards training costs.

The levy calculator

Estimate the costs that your organisation will have available to spend on apprenticeships and how much the government will contribute towards training costs.

Use the levy calculator

Non-levy paying employers

Employers who do not pay the levy can benefit from significant government funding to support their commitment to apprenticeships, through the apprenticeship co-investment model. If an employer has not paid the levy and would like to train an apprentice, they will need to co-invest 5% of the programme and assessment costs, with government funding covering the remaining 95% of the cost. Non-levy paying employers working with LJMU as their Degree Apprenticeship training provider do not need to apply to the government for access to the co-investment model, the University will manage the co-investment funding directly with the ESFA.

Small employer co-investment waiver

Employers with fewer than 50 people working for them will be able to train 16 to 18 year old apprentices without making a contribution towards the costs of their training and assessment, up to the funding band maximum. Instead the government will pay 100% of the training costs for these individuals, direct to your training provider.

For further information on apprenticeship funding, please see the government’s website.