Levy and funding
The apprenticeship levy is a pot of money some companies pay into, which all businesses have access to spend on the training costs of apprenticeships. Companies fall into two categories: levy-payers (who pay into the pot) and non-levy payers (who do not).
If your company’s UK paybill is above £3million per year it will pay 0.5% of its payroll into the apprenticeship levy on a monthly basis, and so will be a levy payer. Employers who aren’t connected to another company or charity will have an apprenticeship levy allowance of £15,000 each year. The allowance reduces the amount of apprenticeship levy you have to pay by £15,000 across the year.
These funds can then be used to pay for apprenticeship training via the digital account.
It’s worth knowing: each month’s funds expire after 24 months. For example, May 2017 funds expire in May 2019. The Government tops up the levy payer’s pot up by 10% for the English paybill only.
If your company’s payroll is below £3million per year then it will not pay into the levy. Non-levy paying employers can still send their staff on an apprenticeship and share the cost of training and assessing their apprentices with the Government - this is called ‘co-investment’. From April 2019, you will pay 5% towards to the cost of apprenticeship training and the Government will pay the other 90%, up to the funding band maximum.
It’s worth knowing: as of December 2017, LSBU is one of only two London universities with government funding to train apprentices from non-levy paying employers.
Employers with fewer than 50 people working for them are able to train 16-18 year old apprentices as well as 19-24 year olds who were formerly in care or who have an education and Health and Care Plan, without making a contribution towards the costs of training and assessment up to the funding band maximum. Instead, the Government will pay 100% of the training costs for these individuals.
Apprenticeship standards are all assigned a funding band by the Government – these funding bands are the maximum amount the Government will fund via the levy towards a given apprenticeship standard. There are 15 funding bands ranging from £1,000 to £27,000.
- You can only spend your apprenticeship funding on the training costs of approved apprenticeship standards or frameworks.
- For staff on apprenticeships who live in England (or whose workplace is in England for 50% of their apprenticeship) or have lived in the EEA for 3 years, where a visa is issued, the apprentice must have a visa and employment for the full duration of the apprenticeship.
- Your training provider must be published on the Register of Apprenticeship Training Organisations. LSBU is on this Register.
- When the apprenticeship requires, an End-point Assessment organisation on the Register of End-Point Assessment Organisations.
- Every apprenticeship has a funding cap - this sets the maximum levy or co-funded investment that can be made for this apprenticeship.
- If the cost of the Apprenticeship is above the funding cap, the employer must pay any additional costs as agreed with the training provider.
- The main provider is the funding route for all apprenticeship funding.
There are additional £1,000 incentive payments paid direct to you for certain categories of apprentice. These are apprentices who are either aged 16–18 or 19–24 and have previously been in care or have a Local Authority Education, Health and Care plan in place. Businesses with fewer than 50 employees can benefit from the small employer co-investment waiver.
Incentive payments come to the University via the government and once the University receives this, the University pays the employers. The money comes in two instalments: 90 days after the start (50%) and 365 days later (50%) for the 16–18 year olds.
The Government has produced further information on apprenticeship funding.
28 August 2019International Conference on Renewable Energy and Vacuum Insulation for Nearly Zero Energy Buildings
28 August 2019CIPD courses at LSBU information evening
5 October 2019University Open Day
7 October 2019School of Business Graduation Ceremony 2019
14 October 2019Graduation Ceremony: School of Arts and Creative Industries; School of Applied Sciences; School of Law and Social Sciences
28 October 2019LSBU Graduations 2019: School of the Built Environment; School of Engineering
4 November 2019School of Health and Social Care Graduation Ceremony 2019
9 November 2019University Open Day
27 November 2019Postgraduate Open Evening
Mature students aiming for career change make LSBU first choice in Clearing
15 August 2019
Chiropractic student wins ‘best new delegate’ at World Congress of Chiropractic Students AGM
6 August 2019
Drama graduates perform at Kingston's International Youth Arts Fringe Festival
8 July 2019
Design students win 2019 PVC Redesigned competition
5 July 2019
Bakery students achieve great success at the Alliance of Bakery Students and Trainees Conference 2019
3 July 2019
LSBU first UK university to launch fully chartered town planner apprenticeship scheme
27 June 2019
Engineering the Future: Two teams of LSBU students make it to Design Challenge National Finals
27 June 2019
LSBU celebrates wealth of local business talent at Southwark Business Awards Gala Finale
18 June 2019
Creative Technologies students celebrate work at End of Year Show
14 June 2019