Your funding reservations
Smaller employers that do not pay the apprenticeship levy can now reserve apprenticeship funding for training and assessment in their apprenticeship service account.
How it works
The funding will cover 95% of the cost of the apprenticeship (up to the funding band maximum), smaller employers will need to pay the remaining 5% directly to the training provider. The 95% funding is paid directly by the government to the training provider. This is also called ‘co-investment’.
There are some exemptions for co-investment in the apprenticeship funding rules.
What you can reserve
From January 2020, smaller employers that do not pay the apprenticeship levy can reserve funds for up to 3 apprenticeship starts on standards. You cannot reserve any funds for frameworks.
To reserve funding, you will need to enter the apprenticeship start date and standard. We will fund up to the funding band maximum, but you must negotiate the cost of the training and assessment with the training provider.
If you agree a training cost that is above the funding band maximum, your organisation will have to fund the additional cost.
You can change the apprenticeship start date and standard when you add the apprentice’s details, without losing the reservation.