HR · 21 December 2017

Government puts 500m into apprenticeship training for non-levy paying employers

Since April 2017,  firms with a payroll above 3m have been paying into the Apprenticeship Levy
Since April 2017, firms with a payroll above 3m have been paying into the Apprenticeship Levy
The government has started to deliver funding worth almost 500m to apprenticeship training providers in its push to create more placements at small businesses.

The Education and Skills Funding Agency (ESFA), an executive body sponsored by the Department for Education (DfE), is today (21 December) awarding contracts to hundreds of organisations offering in-work training placements for employers not paying the Apprenticeship Levy.

By funding training providers, the government hopes to enhance provision of high quality? apprenticeships across the country and in each business sector.

In early January, the Find Apprenticeship Training online portal will be updated with a list of providers offering placements to employers with a payroll under 3m.

Since April 2017, employers with a payroll of over 3m have been charged 0.5 per cent on annual bills towards the apprenticeships levy, to fund the government’s target of three million new apprenticeships by 2020.

What smaller employers need to know about the Apprenticeship Levy

According to the DfE, the contracts are being awarded following a rigorous? procurement process, designed to ensure sustainable provision of training for employers over the next 15 months. Over 1, 000 training providers are said to have applied for funding.

After the initial contract period has finished, participating providers will be able to bid for more funding if they can demonstrate evidence of demand from business owners, and subject to ESFA rules and availability.

To create stability for business owners when providers have been unable to access further funding, contracts will be extended by three months to allow apprentices to complete existing training.



Praseeda Nair is an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.

Tax & admin