Degree ApprenticeshipsFunding

Degree apprenticeships offer an excellent opportunity to enhance your workforce's knowledge and skills to progress within your organisation.

Funding arrangements, using your apprenticeship levy through the Education and Skills Funding Agency, are designed to be accessible and affordable for all employers, whatever your size.

Levy payer

If your annual pay bill exceeds £3 million, you can allocate your levy contributions towards the cost of degree apprenticeships. If your levy funds cover the course expenses, no additional payments are required.

Once the levy funds are exhausted, the government covers at least 95% of the fees.

Additionally, you may receive a £1,000 support payment from the government if your apprentice meets certain criteria including:

  • being under 19 when they start the apprenticeship
  • being under 25 and a care leaver when they start the apprenticeship
  • having a local authority education, health and care plan

Non-levy payer

 

Employers with an annual pay bill below £3 million receive at least 95% coverage of tuition fees for their apprentices from the government. Depending on the number of employees and the apprentice's circumstances, extra financial assistance may be available.

Similar to levy-paying employers, non-levy payers may also receive a £1,000 support payment for eligible apprentices, including:

  • being under 19 when they start the apprenticeship
  • being under 24 and a care leaver when they start the apprenticeship
  • having a local authority education, health and care plan

Furthermore, apprentices are considered full-time employees and are entitled to a wage, statutory holidays, and paid study leave. Employers must adhere to the applicable National Minimum Wage requirements and are exempt from paying Class 1 National Insurance contributions for apprentices under 25 years old. Detailed eligibility criteria can be found on the government website.