Apprenticeship funding options for employers
Investing in apprenticeships is a powerful way to build skills, boost productivity, and future-proof your workforce. Whether you're a levy-paying employer or a non-levy organisation, there are funding options available to support your training goals, and Reed Learning is here to help you make the most of them.
Your options
For levy-paying employers
If your organisation has an annual payroll over £3 million, you’ll pay the apprenticeship levy - 0.5% of your total payroll, collected monthly via PAYE. These funds are stored in your Apprenticeship Service Account and can be used to cover the cost of apprenticeship training and assessment.
Key benefits:
Use funds to train new or existing employees.
Funds expire after 12 months if unused.
You can now transfer up to 50% of your annual levy to other organisations to support their apprenticeship programmes. Learn more here.
For non-levy Paying employers
If your organisation does not pay the levy, you can still access government funding through co-investment or levy transfers.
Key benefits:
The government covers 100% of training costs if the apprentice is under 25 at the start of the course, (95% if 25 or over).
You must reserve funding in advance via the Apprenticeship Service.
Levy transfer funding may be available, allowing apprenticeship training costs to be funded through another employer's unused levy funds.
Additional government incentives
Eligible employers may be able to access additional funding when recruiting apprentices.
A £1,000 employer payment is available when employing an apprentice aged 16-18, or under 25 if they have been in the care of the local authority or have an Education, Health and Care (EHC) plan. This payment is available to both levy-paying and non-levy-paying employers.
Eligible non-levy-paying employers may also be able to access a £2,000 incentive payment when recruiting apprentices aged 16-24.
Pay 0% employer National Insurance contributions on eligible apprentices under 25.
Reed levy transfer support
Reed may be able to allocate a portion of its unused apprenticeship levy funds to support your organisation’s training needs, regardless of whether you are a levy-paying employer. This can cover 100% of training and assessment costs, removing the need for co-investment. You can find out more about levy transfer rules here.
If you're interested in exploring the possibility of using Reed's funding, then get in touch and we will submit an application on your behalf.
Apprenticeship Service Account: The receiving organisation must have an active apprenticeship service account.
New apprenticeship start: Funds can only be used for new apprenticeship starts, though the apprentice can be an existing employee. An exception exists for apprentices changing employers.
Training and assessment costs: Transferred funds cover the full cost of apprenticeship training and assessment, up to the funding band maximum.
Direct transfer: The sending employer initiates a direct connection through the Digital Apprenticeship Service using the receiving organisation's account ID.
Pledge application: Alternatively, receiving organisations can apply for funds pledged by levy-paying employers through the government's online service.
Employers may specify criteria (e.g., location, sector, apprenticeship type or level) for pledges.
Applications are submitted through the receiving organisation's apprenticeship service account.
The sending employer reviews and accepts or rejects applications.
Receiving organisations can track their application status and accept or decline transfers.
Encourage full duration funding: Receiving organisations should encourage the sending employer to commit funds for the entire apprenticeship duration.
Employer responsibilities: The receiving organisation is responsible for all aspects of the apprenticeship beyond training and assessment costs, including the apprentice's wages, employment, and adherence to funding rules.
Financial contingency: If the transferred funds run out before the apprenticeship is complete, the receiving organisation will be responsible for 5% of the remaining training costs, with the government covering the rest.
Access to training funds: Levy transfers provide vital funding for apprenticeship training, especially for smaller businesses and charities with limited budgets.
Workforce development: Funds can be used to upskill existing staff or recruit new apprentices, fostering talent development and supporting business growth.
Support for specific sectors/communities: Receiving funds can help organisations develop skills in targeted industries, local areas, or support specific causes.
Frequently Asked Questions
An apprenticeship is a great way to invest in the training and upskilling of your people. It is a paid job where the individual spends at least 20% of their time on ‘off the job’ learning. This learning can take place both online, in a classroom, or as a mix of both.
We offer the flexibility for apprentices to learn in ‘bite-sized chunks’ through self-directed online learning and virtual seminars.
Our team will be happy to discuss what a typical week could look like for an apprentice at your organisation.
It’s a government tax on employers with a payroll over £3 million, used to fund apprenticeship training.
Yes - apprenticeships can be used to upskill current employees.
Unused funds expire after 12 months and are returned to the Treasury.
Yes - unless receiving a levy transfer, non-levy employers must reserve funding in advance. Learn more.
If you haven’t already, you can register with the Digital Apprenticeship Service (DAS) to view your funds and utilise them to pay your training provider.
Your funds will appear in your Digital Apprenticeship Service (DAS) account on the 23rd day of each month.
Non-levy employers can typically fund up to 10 apprentices. Additional places may be supported via levy transfers.
If you would like to potentially make use of our levy funding, then please get in touch and we complete and application on your behalf using the information you provide.
We offer a range of apprenticeships in HR, L&D, Accountancy and Leadership and Management. These apprenticeships are globally-recognised and help provide individuals the knowledge, skills and confidence to succeed in their chosen career. You can find out more about the apprenticeship options we offer here.
Start the conversation
Our expert team are on hand to find the best option for you, and answer any questions you may have – get in touch using the form below: