Levy Management
Apprenticeship Levy
Maximise your apprenticeship levy investment. Learn how to manage your funds, develop your workforce, and transfer unused levy to support businesses in your supply chain.
Watch: Understanding the Apprenticeship Levy
A quick guide to how the levy works and how to make the most of your funds.
What is the Apprenticeship Levy?
The Apprenticeship Levy is a UK government initiative introduced in April 2017 to fund apprenticeship training across England. Employers with an annual pay bill exceeding £3 million contribute 0.5% of their total payroll into a Digital Apprenticeship Service (DAS) account.
These ring-fenced funds can only be used to pay for apprenticeship training and end-point assessment with approved training providers. The levy represents a significant opportunity to develop your workforce at reduced cost—but funds expire after 24 months if not used.
Many large employers fail to utilise their full levy pot, missing valuable opportunities to upskill staff or support their supply chain through levy transfers.
Quick Levy Calculator
Example calculation. Your actual levy depends on your total pay bill.
Make Your Levy Work Harder
Don't let your levy funds expire unused. Here's how apprenticeships deliver real value for your organisation.
Develop Your Workforce
Use levy funds to upskill existing employees or train new recruits with nationally recognised qualifications.
Boost Productivity
Apprentices trained to your specific business needs deliver measurable improvements in performance and efficiency.
Transfer Unused Funds
Share up to 50% of your annual levy with other employers, including SMEs in your supply chain or sector.
Future-Proof Skills
Access apprenticeships from Level 2 to Level 7 across technical, digital, management and professional pathways.
Don't Lose Your Levy Funds
Levy funds expire 24 months after entering your account. The oldest funds are used first. Plan your apprenticeship strategy now to avoid losing money you've already paid.
How to Use Your Levy
Getting started with your apprenticeship levy is straightforward. Here's the process from setup to success.
Create Your DAS Account
Register for the Digital Apprenticeship Service (DAS) to access your levy funds. You'll need your Government Gateway credentials and PAYE scheme details.
Choose a Training Provider
Select an Ofsted-registered training provider like VQ Solutions. We'll guide you through apprenticeship standards and help match programmes to your business needs.
Add Apprentices
Create apprenticeship agreements for new or existing staff. Set training start dates, agree costs, and authorise payments from your levy account.
Monitor Progress
Track apprentice progress, manage funding drawdowns, and receive regular updates from your training provider throughout the programme.
Transfer Unused Levy to Other Employers
Can't use all your levy funds? You can transfer up to 50% of your annual levy to other employers. This is a powerful way to support SMEs in your supply chain, sector partners, or local businesses who wouldn't otherwise afford apprenticeship training.
Levy transfers create goodwill, strengthen business relationships, and help develop the wider talent pool your industry depends on. Many employers use transfers as part of their corporate social responsibility strategy.
How Levy Transfer Works
Identify an employer you want to support (supply chain partner, sector colleague, or local business)
Create a transfer connection through your DAS account using their account ID
Agree the transfer amount and the specific apprenticeship it will fund
The receiving employer uses the transferred funds to pay their training provider
How VQ Solutions Can Help
We make levy management simple. From initial planning to ongoing programme delivery, our team guides you every step of the way.
Levy Planning
We help you audit your levy account, identify expiring funds, and build a strategic plan to maximise your investment in workforce development.
Programme Matching
Our experts match your business needs to the right apprenticeship standards, whether you're hiring new talent or upskilling existing staff.
Transfer Facilitation
If you have surplus levy, we can connect you with SMEs who need funding, helping you support your supply chain or local community.
Apprenticeship Levy FAQs
Common questions about the apprenticeship levy, how it works, and how to make the most of your funds.
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Ready to maximise your apprenticeship levy?
Let our team help you plan your levy strategy, match programmes to your workforce needs, and ensure you get full value from your investment.
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