10 apprentice funding reservations cap reset

10 Apprentice funding reservations cap reset

10 apprentice funding reservations cap reset

The team at Paragon Skill have been working for the last 12 months on our “transfer to train” campaign, focused on building connections between our large levy employers and their non-levy paying counterparts to help cover the full cost of apprenticeship training. As a part of this ongoing campaign, we have so far successfully facilitated the gifting of over £1 million pounds worth of unspent levy funds to our small and medium employer partners.

The only restriction on accessing further funding has been the limit in place of 10 funded apprentices per non-levy paying employer. As of 1 June 2022, all non-levy employer caps on apprenticeship starts will be reset to zero, and this is regardless of the number you currently employ.

Key points on this update:

  • Employers that do not pay the apprenticeship levy can reserve funds for up to 10 apprenticeship starts.
  • From 1 June 2022, all non-levy employer reservation levels will be reset to 0, enabling each employer who does not pay the Apprenticeship Levy to make up to 10 new reservations.
  • Any reservations made before 1 June 2022 can be converted to starts within the reservations period. These will not count towards the number of reservations made in the financial year 2022-23.

What are funding reservations?

Reserving apprenticeship funds is a mandatory process for all non-levy funded apprenticeship starts and are managed through the apprenticeship service. Making a reservation ensures you will have the funds available to them to support with 95% of the cost of apprenticeship training.

Reservations can be made by either the employer through their apprenticeship service account or by your training provider if you have given the correct permissions to do so. Ideally, the reservation would be made as soon as your team has decided to undertake an apprenticeship and certainly before any new apprentices have been recruited.

If you’d like to go through the process of adding an apprentice to an account or to find out more about transferring apprenticeship funds, take a look at the government support video.

Why there are reservation levels

For employers who do not pay the Apprenticeship Levy, reservations give certainty that the government will pay for apprenticeship training while also managing the availability and affordability of apprenticeship funding for all employers.

They may pause reservations for employers who do not pay the Apprenticeship Levy within the financial year to ensure that the programme overall remains affordable.

Want to find out about fully funded training?

The Levy Transfer scheme was launched in April 2018, levy-paying employers could transfer a maximum amount of 25% of their annual funds. Apprenticeships can be funded by a levy paying employer transferring up to 25% of their unused levy to a different employer.

Transferred funds are used to pay for 100% of the training and assessment costs of the apprenticeship up to the funding band maximum. Transferred funds cover the cost of the whole duration of the apprenticeship.

To find out more on how to access available apprenticeship levy funds, read our page covering the topic.

How to access available levy transfer funds.

Get in touch

If you are still unsure on the changes to the apprenticeship funding cap or would like to talk to one of our Levy fund experts, please contact us today on 0800 783 2545, and they can talk this over with you.



Awards & Recognitions