Training providerThis article sits within the Training provider section

There is a similar article for employers.

Co-investment is when employers share the cost of training and assessing apprentices with the government. 

The employer may need to pay some of the cost, but the government will pay the rest up to the funding band maximum. If the apprenticeship started: 

  • on or after 1 April 2019, your organisation must pay 5% of the total cost
  • before 1 April 2019, your organisation must pay 10% of the total cost

Employers that do not pay the levy

If the employer does not pay the levy, then it always co-invests with the government with the appropriate percentage that you pay as advised above.

If they employ fewer than 50 employees, they may not need to pay co-investment and the apprenticeship can be funded by the government. Please discuss this with the employer when considering an apprenticeship.

If the employers circumstances change and they start to pay the levy after an apprenticeship has started, the apprenticeship will only be paid through co-investment if the employer does not have enough apprenticeship funds to pay for training and assessment.

If the employer begins to pay the apprenticeship levy, then current and future apprenticeships will use their levy balance and they will not need to pay co-investment, unless they do not have sufficient levy within their account.

It is important to monitor your levy balance and monthly payments to ensure that the employer pays the correct co-investment. This can be checked within the Finance section of their Apprenticeship Service account.

If the employers account does not update to start showing the levy balance, they may need to remove their PAYE scheme and re-add this ensuring they use the Government Gateway credentials for their organisation.

Please note that levy is transferred from HMRC to the Apprenticeship Service around the 23rd of each month.

Levy-paying employers

The employers account will automatically go into co-investment if they do not have enough apprenticeship funds to pay for training and assessment. It is important to monitor the levy balance and monthly payments to ensure they pay the correct co-investment.

Employers cannot carry apprenticeship costs into the next month.

Extra funding

Employers could also get extra funding. Details of this can be found under Additional payments for employers, providers and apprentices in the Apprenticeship funding rules.

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