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Apprenticeship Levy Payer - Funding Rules

Main Funding Rules - Levy Payers

  • Your organisation pays into the levy monthly, the levy will be topped up by an additional 10% by the government
  • These funds stay in the levy pot for 2 years then they will be removed starting from the earliest unused contribution - use it or lose it
  • You can access the levy system to allocate payment to your chosen training provider/s (please see guidance under Using the Apprenticeship Service Account tab)
  • You can only spend levy funds with trainin gproviders that have been approved by the government and are registered on the RoATP - Register of Appreoved Training Providers and funds can only be used to pay for approved apprenticeships
  • Grey Seal have a direct contract with the ESFA - Education amd Skills Funding Agency which allows us to arrange for additional funding if your levy pot has been used in full.  These funds will pay for 90% of the cost, leaving the employer to pay the 10% balance is paid monthly
  • If you employ an apprentice aged 16-18 you will receive an additional £1,000
  • Maths and English requirements are funded separately - 100% paid by the ESFA
  • Employers are exempt from employers national insurance for apprentices under 25 years

Main Apprenticeship Rules

  • Apprentices must spend 20% or their time in 'off the job' learning, this can include:
  •      Theory training e.g., online training, workshops, manufacturer training
  •      Practical training e.g., shadowing, mentoring
  •      Learning support and time spent writing assignments
  • Apprentices are employees and have the same employment statutory rights as any employee
  • Apprentices should be employed for 30 hours pw plus (some exceptions) on a PAYE basis
  • Apprenticeships must last for a minimum of a year, although likely to be 15 months plus
  • NMW rates apply - although an apprentice in their first year has its own NMW rate
  • Apprentices must be on an approved apprenticeship

Benefits of Apprenticeships

  • Access and attract talent; transform your recruitment model
  • Develop future leaders
  • Become and employer of choice
  • Broaden your workplace demographic
  • Plug skills gaps
  • Drive culture change
  • Develop your corporate social responsibility profile






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