Levy funding & Additional payments

Apprenticeship levy funding

Maximising your Apprenticeship Levy investment

Maximising your Apprenticeship Levy investment

Apprenticeship Levy Funding:

The Apprenticeship Levy Funding information on this page is for employers who have an annual payroll of £3,000,000 or more. If your payroll is less than this figure then you should view our Non-Apprenticeship Levy Funding pages.

Funding for  Levy Apprenticeships can be quite complex if you still have questions after reading this page,  please contact us.

About the apprenticeship levy

The Apprenticeship Levy started on the 6th of April 2017. Since then, employers in any sector with an annual payroll of over £3 million have to pay a Levy charged at a rate of 0.5% of annual payroll.

This is estimated at only 2% of businesses in England will pay the Levy. The levy is collected monthly and is paid to HM Revenue and Customs (HMRC) through the Pay as You Earn (PAYE) process. 

You can spend your apprenticeship levy using your Digital Apprenticeship Service account and monies can only be used to fund approved apprenticeships. All NowSkills apprenticeships are approved and eligible to be funded with apprenticeship levy monies view the Digital Apprenticeship Service.

Your available Levy funds will be adjusted to reflect the proportion of your English based employees. The UK government also uplift your available funds by 10%, for example, if you pay £1,000 into your levy account, you will have £1,100 available to spend.

Your levy funds will have an expiration date of 24 months, and any unused funds will be claimed by HM Treasury.

If you spend all of your apprenticeship levy, you can still enrol apprentices, and the proportion of the outstanding training costs will automatically receive 95% funding. This process is automated and NowSkills will invoice your organisation 5% of the outstanding balance. For example, if £8,000 is unfunded, your organisation will pay £400 to cover this cost*.

*ESFA funding rules require all apprenticeship training providers to charge 5% co-investment, they cannot discount or offset the co-investment.

We are proud to work with leading employers:

Apprenticeship funding bands

Funding bands correct at 23rd August 2022

Apprenticeship Standard

LevelFunding BandDuration
Information Communications Technician3£15,00012-15 months
Software Development Technician3£15,00012-15 months
Digital Marketer3£11,00012-15 months
Content Creator3£10,00012-15 months

Network Engineer4£17,00015-18 months
Software Developer4£18,00015-18 months
Data Technician 3£12,00012-15 months
Data Analyst4£15,00015-18 months
Business Analyst4£18,00015-18 months

We are proud to work with leading employers:

How Much do Apprenticeship Levy employers pay?

Employee Size or PayrollApprentice Age (at start)Apprenticeship Funded?Training Costs (Paid by Employer)Additional Payment to EmployerWage (Paid by Employer)

+£3m payroll using only levy funds

16, 17 or 18
Paid from the levy until it has been used up then it will be co-funded
100% or 5%
100% or 5%

Apprentice Wages

Apart from training costs, you will also need to pay your apprentice’s wages and an apprentice must be employed for a minimum of 30 hours per week. You can pay more than the minimum, most employers do

Tax Relief on Apprentice Wages

If you employ an apprentice under the age of 25, you may no longer have to pay employer Class 1 National Insurance contributions on their earnings up to the new Apprentice Upper Secondary Threshold.

We’re here to support you

At NowSkills we’re here to support employers. Please contact our Employer Engagement Team on 0345 556 4170 or complete the form below to begin.



If you are interested in employing a NowSkills IT Apprentice or would like to know more about the apprenticeship process, please fill in the contact form below to request a callback from our friendly engagement team. We’ll call you back at a time that suits you. Alternatively, one of our representatives will be in touch within 48 hours for a no-obligation discussion.

We look forward to speaking with you soon.