What can employers spend apprenticeship levy funding on?
Employers can spend apprenticeship levy funding on apprenticeship training and end-point assessment (the assessment of apprentices by an independent organisation, required before they can complete the apprenticeship), either under an apprenticeship standard or an apprenticeship framework. The funding can be spent only with an approved training provider or an approved assessment organisation. The apprentice's main workplace must be in England.
A levy-paying employer can transfer up to 25% of its annual levy credit to another employer, for example an organisation in its supply chain. The receiving employer must use the funds for training and assessment for apprenticeship standards (not frameworks). The transferring employer must agree to the individual apprenticeships to be funded.
Employers cannot use the apprenticeship levy to fund other costs of apprenticeships or other training costs, such as:
- fees for licences to practice;
- travel and subsidiary costs;
- time spent by managers on generic line management responsibilities;
- traineeships; or
- work placement programmes.
The Government publishes details of its funding policy for England.