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  2. Information for Employers
  3. Our Apprenticeship Programmes
  4. Apprenticeship Levy

Apprenticeship Levy

Funding Your Digital Skills Apprenticeship.

What is the Apprenticeship Levy?

The Apprenticeship Levy is a UK Government funded mechanism designed to support businesses in investing in apprenticeships. If your organisation has a pay bill over £3 million in a tax year, you pay the Levy; the funds you pay (plus a government top-up) can then be used to train apprentices through Ada.
Employers with a pay bill under £3 million benefit from co-investment funding (see below).

Department for Education Blog

Options:

Levy Paying Employers

If you’re a UK-based employer with a UK pay bill of over £3 million, your business must pay the Apprenticeship Levy. These costs are paid through a government tax scheme. Any tax paid is then reserved in an apprenticeship fund that can be used to pay for apprenticeship training within your business.

Non-Levy Paying Employers – Co-Investment

Employers with a pay bill under £3 million (i.e. non-Levy-paying) or those who exhaust their Levy funds can access a Government co-investment scheme:
The employer pays 5% of the cost of the apprenticeship training and assessment; the Government pays the remaining 95%, up to the funding band maximum for the apprenticeship standard.

Non-Levy Paying Employers – Levy Transfers

Large employers who pay the Levy but cannot use all their funds can transfer up to 50% of their levy funds to other employers (such as within their supply chain). This enables smaller or non-Levy employers to access those funds.

Why it matters for you at Ada

At Ada, we specialise in digital skills apprenticeships. If your organisation wants to :

  • Recruit and train digital apprentices (e.g., in software development, cyber security, data analytics); or
  • Upskill current staff via an apprenticeship route then you can make use of your Levy funds (or co-invested funding) to do so.

We’ll work in partnership with you to:

  • Identify the appropriate apprenticeship standard;
  • Calculate your funding options (Levy vs co-investment);
  • Arrange training delivery and assessment;
  • Ensure compliance with Government rules (e.g., minimum duration, off-the-job training requirements).

Frequently Asked Questions

Can I use the Levy to pay an apprentice’s salary?

No. Levy funds can only be used for the apprenticeship training costs and assessment. Employers must pay the apprentice wages (at least the applicable National Minimum Wage)

What if I have unused Levy funds?

Unused funds will expire after 24 months. You also have the option to transfer them to other eligible employers. Make sure you plan your apprenticeship starts accordingly to avoid losing funds.

What is a “funding band” for an apprenticeship?

Each apprenticeship standard has a funding band which sets the maximum amount of funding that can be drawn via the Levy or co-investment route. If the training cost exceeds the funding band, the employer must cover the excess.

Let’s Get Started

If you’re an employer ready to invest in digital talent, contact our Apprentice Partnerships Team at Ada on partnerships@ada.ac.uk. We’ll help you review your Levy account, assess your funding options, select the right apprenticeship standard and deliver a high-quality programme that builds the future workforce you need.

For more information on Levy Funding: https://www.gov.uk/employing-an-apprentice/get-funding