Apprenticeship Levy
Apprenticeships are a cost-effective way to train new and existing employees, build skills within your team and support long-term workforce development.
Guidance on Levy and Non-Levy Apprenticeship Funding
At Professional Training Solutions, we help employers understand how apprenticeship funding works, including the Digital Apprenticeship Service, levy funding, non-levy contributions and levy transfers. Whether you are a large levy-paying organisation or a smaller employer accessing government coinvestment, our team can guide you through the process from start to finish.
What is the Apprenticeship Levy?
The Apprenticeship Levy is paid by employers with an annual pay bill of more than £3 million. Levy-paying employers contribute 0.5% of their annual pay bill into their Digital Apprenticeship Service account, which can then be used to fund apprenticeship training and assessment. These funds can be used to train new apprentices or up-skill existing employees through approved apprenticeship standards. Levy funds are accessed through the employer’s Apprenticeship Service account. From August 1 2026, levy funds must be used within 12 months. Any unused funds will expire and be returned to the Treasury.
Levy-Paying Employers
If your organisation pays the Apprenticeship Levy, you can use your funds to cover the cost of apprenticeship training and end-point assessment. This means you can invest in your workforce while making full use of funds already allocated through your levy account. Levy funds can support apprentices across a range of sectors, including business, childcare, health and social care, accounting, leadership and more.Non-Levy Employers
If your organisation does not pay the Apprenticeship Levy, you may still be able to access government support towards apprenticeship training. From August 1st 2026, non-levy employers recruiting apprentices aged 16 to 24 will receive 100% government funding towards apprenticeship training and assessment costs, meaning there is no employer contribution to pay. For apprentices aged 25 and over, employers will continue to pay the mandatory 5% employer contribution towards training and assessment costs. Alternatively, Professional Training Solutions can support employers in securing a levy transfer from a levy-paying organisation, which may cover the full cost of the apprenticeship, including the employer contribution.
What is a Levy Transfer?
Some levy-paying organisations are able to transfer unused levy funds to other employers.
If your organisation receives a levy transfer, this can cover the full cost of apprenticeship training and assessment, meaning you may not need to pay the usual employer co-investment.
Professional Training Solutions can support employers in identifying levy transfer opportunities. A successful levy transfer can cover the full cost of apprenticeship training and assessment, including the employer’s mandatory contribution, meaning apprenticeship training may be fully funded regardless of the apprentice’s age.
Setting up your Digital Apprenticeship Service Account
To access apprenticeship funding, employers will need to use the Digital Apprenticeship Service.
Step 1 – Access your account. Log in or create an account at accounts.manage-apprenticeships.service.gov.uk.
Step 2 – Add your apprentice. Go to the “Apprentices” section and select “Add an Apprentice”. We can also support with advertising your vacancy through the Find an Apprenticeship service.
Step 3 – Select your training provider. Enter our PRN: 10021391 and select Professional Training Solutions Ltd.
Step 4 – Delegate permission. Choose the option allowing your provider to add apprentices on your behalf.
Step 5 – Complete setup. Review and approve the apprentice details. Our team will support you through the final steps before training begins.
How Professional Training Solutions Can Help
At Professional Training Solutions, we support employers throughout every stage of the apprenticeship journey. From understanding levy and non-levy funding to setting up your Digital Apprenticeship Service account, selecting us as your training provider, securing funding and advertising vacancies, our experienced team is here to help. We can also provide guidance on levy transfers, co-investment and ongoing apprentice support to ensure a smooth and successful apprenticeship programme.
Our team can help employers understand the latest apprenticeship funding rules, including full government funding for eligible 16 to 24 year olds and opportunities to access levy transfer funding for apprentices aged 25 and over.
For help and guidance, please contact Admin@protrain-solutions.co.uk.
Frequently Asked Questions
The Apprenticeship Levy is a UK government scheme that requires employers with an annual pay bill over £3 million to contribute towards apprenticeship funding through PAYE. The funds are added to the employer’s Apprenticeship Service account and can be used to pay for eligible apprenticeship training and assessment.
Your business pays the Apprenticeship Levy if its annual pay bill is over £3 million, with the Levy charged at 0.5% of the relevant pay bill. Employers below this threshold do not pay the Levy but can still access government funding towards eligible apprenticeship training.
Employers access apprenticeship funding through an Apprenticeship Service account, which is used to manage apprentices and training payments. Levy paying employers use funds available within their account, while eligible non Levy employers can receive government funding towards apprenticeship training costs.
Yes, Apprenticeship Levy funds expire 24 months after they enter an employer’s Apprenticeship Service account if they remain unused. Employers can therefore benefit from planning apprenticeship training in advance to make effective use of available funding before individual contributions expire.
Yes, Levy paying employers can transfer up to 50% of their annual apprenticeship funds to other eligible organisations to support their apprenticeship training. This can allow smaller employers and other organisations to access transferred funding towards eligible apprenticeship costs while helping Levy paying businesses make greater use of their available funds.
