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Changes in apprenticeship funding (April 2019)

During this year’s Spring Statement, Philip Hammond announced changes in apprenticeship funding with an emphasis on helping more SMEs take on apprentices. The halving of co-investment was brought forward to the beginning of this financial year and the amount of funds that levy payers can transfer increases.

Co-investment increases from 90% to 95%

Small and medium enterprises that aren’t required to pay into a levy pot are only required to co-invest the cost of an apprenticeship. Up until April 2019, the percentage of the cost that the employer had to pay was 10%, this has now been halved to 5%. For example, that would mean that an apprenticeship that costs £12,000 would now cost the employer £600 – the government would then cover the remaining £11,400. Co-investment also occurs if you’re a levy payer that has used up the funds in their account. Any further apprenticeships the business would like to do would come at a cost of 5% of the original price. This doesn’t affect businesses that have 49 employees or less that take on 16-18-year-old apprentices, the apprenticeship is still fully funded by the government.

DID YOU KNOW? There’s a £1000 incentive for any employer (inc. levy payers) that hires an apprentice that is 16-18-year-olds.


Levy transfer increases from 10% to 25%

Levy paying employers have the option to transfer a portion of their unspent funds to another organisation e.g their supply chain, charities, etc. The percentage that could be transferred has increased from 10% to 25%. The benefit for a non-levy payer using levy transfer rather than co-investment is that with levy transfer 100% of the cost will be covered.


Funding amounts change for digital apprenticeships

A group of programmes have had their funding amounts reduced during the Institute of Apprenticeships’ review of the digital industries programmes.

  • Digital Marketer – £11,000 (was £12,000)
  • Network Engineer – £17,000 (was £18,000)
  • Assistant Accountant – £8,000 (was £9,000)
  • Professional Accounting Taxation Technician – £8,000 (was £9,000)

At Arch, we can confirm that the changes in funding won’t cause changes in our delivery of these programmes.


If you’re interested in utilising apprenticeships in your recruitment and retention strategy or need a levy consultation, please get in touch.

Stephanie Khan

Stephanie is a former Marketing Apprentice, and now a Content Marketing Executive at AVADO. Since completing her apprenticeship, she has become an advocate for apprentices and the benefit they bring to businesses. She writes about modern apprenticeships, the levy, and the digital skills crisis.

Posted March 22, 2019