Degree Apprentice


Information for employers

Degree Apprenticeship funding for employers

Degree Apprenticeships are co-funded by the employer and the Government.

What funding is available to employers?

If your company is paying the Apprenticeship Levy (see details below), the Skills Funding Agency (SFA) will co-invest in the training costs associated with Higher and Degree Apprenticeships. The cost of the training depends on the apprenticeship level and industry sector and the SFA will invest up to the funding band maximum with the employer paying the remainder of the costs.

Additional incentives:

Your organisation can also receive the following additional incentives:

  • An extra payment of £1,000 for each apprentice aged 16-18
  • 100% of apprenticeship training costs paid by the government for businesses with fewer than 50 employers who employ apprentices aged 16-18
  • A payment of £2,700 when your apprentice passes their Assessment of Professional Competence (APC) final assessment

If you are not paying the Apprenticeship Levy you will be eligible to receive 90% contribution towards the training costs associated with a Higher or Degree Apprenticeship.

This multi-million pound fund will allow universities and colleges to work with top employers to design high-quality degree apprenticeships that give people a ladder of opportunity, more choice and help shape Britain to become an apprentice nation.

Robert Halfon - Minister of State for Apprenticeships and Skills

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. This will form part of an employer’s Digital Account and (in England only) the Government will add an extra 10% on any levy payments that are deposited. 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.

Use 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 calculator

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

Test your knowledge of the Apprenticeship Levy by taking our quiz.