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Apprenticeship funding for employers who do not pay the apprenticeship levy

From January 2020 employers who don’t pay the apprenticeship levy will be able to access funding for all new apprenticeships through the digital apprenticeship service.

On 9th January the ESFA updated their document Apprenticeship funding for employers who do not pay the apprenticeship levy outlining the process during this transition period, leading to all non-levy paying employers being able to access funds through the digital apprenticeship service by Autumn 2020.

The ESFA are hoping to have all non-levy paying employers using the apprenticeship service by the autumn of 2020, which will in turn allow them to choose providers that have been approved by the ROATP to deliver apprenticeship training, and select the endpoint assessment organisations. The reservation of funds is the first step in the ESFA’s aim to move away from the current primary funding route of contracts, to a digital version utilising the apprenticeship service. The ultimate goal is to get all providers of any size to manage their apprentices through the apprenticeship service.

The reservation of funds is described by the ESFA as “In moving away from government contracts and introducing a system of which employers can choose their apprenticeship and the training provider, via the apprenticeship service we have developed a new mechanism to achieve the same objectives, reserve my funding.”

Our Reporting and Funds Adviser Matthew Butson talks you through the changes and how they will effect you.