Apprentices: Taxation

(asked on 26th April 2019) - View Source

Question to the Department for Education:

To ask the Secretary of State for Education, what the highest amount is of apprenticeship levy funds that an employer can spend for a single apprenticeship.


Answered by
Anne Milton Portrait
Anne Milton
This question was answered on 7th May 2019

The new 30-band funding structure was introduced on 1 August 2018 for all new apprenticeship starts. Details can be found within ‘Apprenticeship Funding in England’ published on GOV.UK, available here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/788312/Apprenticeship_funding_in_England_from_April_2019.pdf.

These bands range from £1,500 to £27,000 and set the maximum price that the government will contribute towards the training and assessment for an individual apprenticeship.

The funding band upper limit of £27,000 is the maximum amount of government funds that levy-paying employers can draw down from their apprenticeship service accounts to put towards the cost of an individual apprenticeship.

For non-levy-paying employers, at least 95% of the apprenticeship training and assessment costs will be paid for by the government, up to the agreed funding band limit.

We know that some employers will wish to use specific delivery models or provide additional training to their apprentices, which goes beyond what is set out in the standard. Employers are free to agree a price above the funding band upper limit but must pay for any additional costs above this.

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