Understanding and Managing Your Apprenticeship Levy Funding
Effectively planning and investing in apprenticeships hinges on a clear understanding of your organisation's available levy funds. Fortunately, the government's online Apprenticeship Service platform makes accessing this crucial information straightforward.
Accessing Your Levy Fund Details
All the essential details regarding your apprenticeship levy fund are conveniently located within your Apprenticeship Service account.
Log In: Begin by logging into your Apprenticeship Service account.
Navigate to 'Finance': Once logged in, locate and click on the 'Finance' section. This is usually prominently displayed on the homepage for easy access.
Within the 'Finance' area, you can readily view:
Your Current Levy Balance: This figure clearly shows the exact amount of levy funding your organisation currently has available for apprenticeship training. This provides an immediate understanding of your accessible resources.
Fund Expiry Dates: It's crucial to be aware that levy funds have a 24-month shelf life from the month they enter your account. This section displays the dates when specific portions of your funds will expire, enabling proactive financial planning and ensuring you maximise your levy before it's lost.
Drawn-Down Funds: This shows the total amount of levy funding that has already been used to support your existing apprentices. This provides valuable insight into your historical investment in apprenticeships.
Planning for Future Intakes: Estimating Available Funds
To determine how many apprentices you can realistically fund for upcoming intakes, the Apprenticeship Service offers a helpful projection tool:
Log In: Access your Apprenticeship Service account.
Go to 'Finance': Click on the 'Finance' tab located at the top of the page. You'll see a summary of your levy account.
Understanding the Figures: The figures displayed at the top represent the actual current values. The figures at the bottom are estimates calculated through extrapolation and are subject to change based on your ongoing levy contributions and spending activity.
Access 'Funding Projection': To estimate your future funding capacity, click on the 'Funding projection' link.
Estimate Apprentice Numbers: Click on 'Estimate Apprenticeships you could fund' and then 'Add more apprenticeships to your current estimate'.
Provide Details: You will be prompted to provide specific information for each prospective apprentice. It's recommended you have the following details ready:
Start Date: The anticipated start date of the apprenticeship.
Standard: The specific apprenticeship standard you will be delivering.
Cost: The total training cost for the apprenticeship.
Programme Duration: The total duration of the apprenticeship, including the End-Point Assessment (EPA) period, not just the learning phase.
(Optional) Transfer Assessment: Only tick the first box if you want to assess whether you have sufficient funds to transfer to another employer.
Review Projections: Once you've entered the details, you'll see two key tables:
Apprenticeships Added: This table displays the total estimated monthly payments and the final completion payment for the apprenticeships you've added to the projection.
Account Funds: This table shows your estimated monthly costs for both your current apprentices and the new ones you're planning. Crucially, if at any point your projected funds are insufficient, the figures will be highlighted in red, alerting you to potential funding gaps.
Tracking Your Levy Account Transactions
To gain a detailed understanding of how your levy funds are being drawn down, you can download your transaction history:
Log In: Access your Apprenticeship Service account.
Go to 'Finance': Click on the 'Finance' tab at the top of the page.
Download Transactions: At the bottom of the page, click on 'Download transactions'. You will likely be able to select a specific period for your report.
The downloaded report will provide a comprehensive breakdown of your levy account activity, including the following key information:
Transaction Date: The date on which the transaction occurred (e.g., when your levy payment credited your account).
Transaction Type and Description: This clearly identifies the nature of the transaction:
Levy: Indicates the monthly tax payments that credit your account.
Monthly Payment: Represents the regular payments made to the training provider during the apprentice's learning period (up to 80% of the total training costs).
Balance Payment: Shows any remaining amount due to the training provider upon the apprentice's completion.
Completion Payment: Represents the final 20% of the total training costs, paid when the apprentice successfully completes their End-Point Assessment.
PAYE Scheme: Identifies the specific PAYE scheme(s) contributing to your levy pot.
Payroll Month: Indicates the month the payroll relates to.
Levy Declared: Shows the 0.5% of your monthly pay bill that forms your levy contribution.
English %: The percentage of your employees based in England, which is applied to the 'Levy declared' amount to determine the actual funds entering your pot.
10% Top Up: The additional 10% contribution provided by the government to your levy pot (calculated as 10% of 'Levy declared' multiplied by 'English %').
Training Provider: The name of the training provider receiving the payment.
Unique Learner Number (ULN): A unique identification number for each apprentice.
Apprentice: The name of the apprentice.
Apprenticeship Training Course: The title of the specific apprenticeship standard being undertaken.
Course Level: The level of the apprenticeship.
Paid from Levy: The amount paid to your training provider directly from your levy funds.
Your Contribution: If, in a given month, your levy funds are insufficient to cover the full training costs, your training provider will invoice you for 5% of the outstanding amount as co-investment. This is your 'contribution'.
Government Contribution: In the same scenario where levy funds are depleted in a month, the government will cover the remaining 95% of the training costs.
Total: The total amount of the transaction.
Further Support
For a more comprehensive explanation and step-by-step guidance on navigating your levy funds, the Department for Education offers a helpful webinar, which you can access here.