How to manage your apprenticeship funds

The government has committed considerable funding to degree apprenticeships so there has never been a better time to get involved.

Registration for the online apprenticeship service is now open. The Department for Education and the Skills Funding Agency (SFA) are encouraging large employers to sign up and register for the apprenticeship service, a new online system that has been set up to support the apprenticeship levy. To sign up, visit The online service enables you to easily manage apprenticeship programmes and estimate financial spend and recruit apprentices.

If you pay the Levy

  • You will pay 0.5% of your pay bill by PAYE to your Digital Apprenticeships Service (DAS) account, minus a £15,000 allowance.  Your account holds your account information and your levy funds
  • Your Apprenticeship funds are held with your pay bill data in your digital account.  The Government will add an extra 10% to your digital account on any levy payments that are deposited.
  • Money paid into your account must be used within 24 months of deposit, by recruiting an apprentice with a registered training provider.
  • The Degree Apprentice begins their apprenticeship: working for you while learning new skills from our excellent education provision.
  • Your training provider draws down funds from your account as your Apprentice accesses their degree programme.
  • If you want to employ more Apprentices than you hold levy funds for in your account, the government will fund 90% of the extra costs. 

If you do not pay the Levy

If you do not pay the levy, you won’t be able to use the apprenticeship service to pay for apprenticeship training and assessment until at least 2018. Instead, you’ll need to agree a payment schedule with the provider and pay them directly for the training. The provider must prove that you have paid your contributions as a condition of government paying its contribution.

If you have fewer than 50 members of staff and you employ a 16-18 year old apprentice, the government will fully fund the apprenticeship. 

Watch the CMI guide on how to approach the levy

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