How will degree apprenticeships be funded?

All UK employers that have a total employee pay bill above £3 Million a year will pay the levy, which has been set at a rate of 0.5% of the employers pay bill.

Employer’s eligible include the public and private sector, charities and education providers. Eligible employers will receive a £15,000 fixed annual allowance to offset against the levy payment, so for example, an Employer with a £3 Million pay bill would have a levy bill of £15,000.

Therefore the allowance is offset against this so their levy payment would be £0.00. Employers will have the freedom to spend their money on apprenticeship training to meet their needs as they see fit, however funds will expire after 24 months so there is an incentive for employers to use their levy fund.

You can read more guidance regarding how the levy will operate here .