Funding and the Apprenticeship Levy

Whether you’re a small start-up or a large multinational, Coventry University Group provides flexible funding options, including guidance on the Apprenticeship Levy, to support high-quality apprenticeships.

For employers with payrolls over £3 million, the Apprenticeship Levy helps fund workforce training, contributing to 95% of apprenticeship costs.
Coventry University Group is here to ensure all employers, both levy and non-levy paying, have access to impactful apprenticeships that develop industry-ready skills.

Information on The Apprenticeship Levy

The apprenticeship levy, a UK government initiative, requires employers with an annual payroll exceeding £3 million to invest in apprenticeship training.

By supporting the funding of new apprenticeships, the initiative aims to enhance skill development and meet the demand for vocational training.

Employers contribute 0.5% of their payroll to fund approved apprenticeship programmes.

If the levy contribution isn't enough to cover the cost of an apprenticeship, the government will cover 95% of the shortfall, up to the maximum funding limit for that program. Employers need to pay the remaining 5%, and any costs above the funding limit.

Smaller businesses not subject to the levy can still receive government support.

Example levy funding

Fewer than 50 employees where the apprentice is 16-18-years-old
No cost to employer - government pays all. Incentive payment of £1,000 for taking on an under 19-year-old.
For Levy paying employers (payroll greater than £3m)
£27,000 comes out of the employer’s Levy pot. Any shortfall is 95% co-funded by the government, meaning it will cost the employer only £1,350 per apprentice (5%) over 4 years or £337.50 a year. Incentive payback of £1,000 for taking on an under 19- year- old.
For non-Levy paying employers (payroll less than £3m)
Employer pays 5% of capped cost = £1,350 over 4 years or £337.50 a year. Incentive payment of £1,000 for taking on an under 19-year-old.

Information for non-levy payers

If your payroll is under £3 million, you don't need to pay the Apprenticeship Levy.

You can access substantial funding for training and assessment costs, with the government covering 95% of the expenses up to the funding band maximum. You only need to pay 5%.

To access funding, you will need to:

Agree on a payment schedule: Coordinate with the training organisation to set up a payment plan.
Make payments: Pay the training organisation directly for your portion (5%). The government will handle the remaining 95% directly with the training provider.

Additional funding opportunities

You might be eligible for extra funding in the following situations:

If your apprentices are aged 16-18
If your apprentices are up to 24 years old and have a healthcare plan
If you have fewer than 50 employees
If your apprentices need Level 2 Maths and English training and learning support

Contact us

Telephone: +44 (0)24 7765 4960
Email: apprenticeships@coventry.ac.uk
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