BESA Training funding for England Funding for England - The BESA

Funding for England

The government has introduced a new apprenticeship reform which will enable employers to have more control over how their apprenticeships are run and funded.

The big changes to apprenticeships will be funded by the Apprenticeship Levy which began on 6 April 2017.

What is the levy?

The apprenticeship levy will be charged at a rate of 0.5% of an employer's pay bill, paid through PAYE on a monthly basis.

The apprenticeship levy will apply to ALL EMPLOYERS IN ALL SECTORS ACROSS THE UK, there are no exemptions, even if you contribute to an existing levy.

Currently, England is the only country where employers can claim the levy back directly.

Each employer will have a levy allowance of £15,000, this is NOT A CASH PAYMENT. It works similarly to the personal tax allowance and cannot be used to purchase apprenticeship training.

Those with an annual pay bill of more than £3 million are liable to pay the levy, meaning less than 1.3% of UK employers will pay the levy.

For those not paying the levy see Co-Investment or watch both our videos - A Guide to the Apprenticeship Reform for SMEs and the recent Apprenticeship Funding update presentation, which goes into greater detail.



apprenticeship levy

An example of a levied employer could be:

  • 250 employees, each with a gross salary of £20,000
  • Pay bill: 250 x £20,000 = £5,000,000
  • Levy sum: 0.5% x £5,000,000 = £25,000
  • Allowance: £25,000 - £15,000 = £10,000 annual levy payment

The government has introduced The Apprenticeship Service, an online system for employers and training providers to help with apprenticeships. Watch our Guide to the Apprenticeship Reform for SMEs for further guidance about The Apprenticeship Service.

Estimate My Funding is a great tool for employers to work out whether they will pay the levy or not and how much they will have available to spend on apprenticeships.

Levy funds will be made available through The Apprenticeship Service, on GOV.UK and will first appear from late May 2017. This will be after the employer has declared their April payroll levy liability to HMRC. Funds will expire after 24 months so #useitorloseit!

All apprenticeships started before 1 May 2017, will still be funded through the existing funding rules until programme completion. The same goes for employer contributions.

BESA Training can help you with the levy and funding process. We can set up and manage your online account, ensuring your funding is directed to the right place at the right time.


transferring levy funds

Levy paying employers can now transfer a maximum of 10% of their annual levy funds to MULTIPLE employers to pay for apprenticeship training and assessment. 


Why should I transfer my levy funding?


Help support the building services supply chain

Invest in the future of the industry

Will create more quality apprenticeships and help employers work in partnership 

Funding not used will go back into a national levy pot #USEITORLOSEIT

Help train the talent of tomorrow

For more information watch the short video below from the Education and Skills Funding Agency.


Most SMEs will not need to pay the levy, instead they can receive co-investment funding from the government will pay 90% of the training and assessment costs and the employer will pay the remaining 10%. The Skills Funding Agency will pay the 90% government co-investment proportion directly to the training provider. The government and training provider have checks and measures in place to ensure the funding is directed to where it should be going.


What can my funding be used for?

  • Apprenticeship training and assessment
  • Against an approved framework or standard
  • With an approved training provider, who is on the new register of apprenticeship training providers
  • To pay the organisation that will be providing the end point assessment towards an apprenticeship standard


  • Apprentice wages
  • Travel and subsistence costs, either for the apprentice or training advisor
  • Managerial costs
  • Traineeships and work placement programmes
  • The costs of setting up an apprenticeship programme
  • Recruitment costs


additional funding & support

Employers have 100% of the training and assessment costs covered when training a 16-18 year old (or 19-24 year old formerly in care or has a special educational needs or a disability)

If you employ a 16-18 year old apprentice you are entitled to £1000 which will be paid in two installments. If you employ a 19-24 old leaving care or who has special educational needs or a disability you will be entitled to £1000.

The Skills Funding Agency will provide funding to the training provider for additional learning support and any funding required to meet minimum standards of maths and English at level 1 and 2.

BESA Training will ensure employers receive all additional funding and support they are entitled to. 


If you have any further questions regarding the apprenticeship levy or funding email or call 0800 917 8419.

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