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The Apprenticeship Levy
and
Digital Apprenticeship Service
July 2016 Update

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Key changes for providers
• New apprenticeships funding model using price bands
and a simpler funding model
• Expected to move to financial year funding for all
employers
• New register of apprenticeship training providers
• New contracting model for providers covering levy and
non levy paying employers

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Employer (levy) commitment
and contracting
OUTPUT:
Levy commitment is
recorded in the digital
apprenticeship service and
appropriate contracts are
in place.
6April 2017 -
HMRC begins
collecting the
apprenticeship levy
from large
employers
The Digital
apprenticeship
service goes live.
Digital apprenticeship
service registration
verifies the identity of
an employer. The
employer registers to
create a digital
apprenticeship service
account. The
employer verifies &
links PAYE scheme(s)
to their account. The
employer can then
view their levy
account balance.
The SFA maintains
a library of
apprenticeship
standards and a
catalogue of
providers’ course
offerings helping
employers search
and select the right
Provider and
standard. The SFA
provides a ‘recruit
an apprenticeship’
service for
employers.
The employer and
provider agrees a
price and the
employer records
the details in the
digital
apprenticeship
service initiating the
‘double-lock’ which
will be confirmed by
the provider via ILR
returns.
The SFA issues an
agreement to the
selected provider,
with a schedule to
cover the value of
the deal, or update
the existing
agreement if this is
not the first deal.
The provider can
now begin
delivering the
apprenticeship.
The SFA is able to
manage the
apprenticeship
budget by
monitoring and
forecasting levy
commitments.
TRIGGER: The digital Employer registration Search and Select Commit levy funds Agree contracts
OUTPUT: Levy
commitment is
recorded in the digital

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Employer (non-Levy) Process
SFA procures
non-levy
provision
A contract is
agreed with
providers
Employer and
provider agree
deal
Provider submits
ILR
SFA pays funding
Employer pays
contribution
The SFA invite
and select those
providers on the
register of
apprentice
training providers
to tender to
deliver co-funded
apprenticeship
education and
skills training.
A contract for
services between
the SFA and the
provider to deliver
non-levy funded
apprenticeship
education and skills
training is agreed.
A non-levied
employer agrees a
deal with an SFA-
approved provider
to deliver
apprenticeship
education and skills
training.
The SFA monitors
the performance of
a provider delivering
non-levy funded
apprenticeship
education and skills
training through
monthly ILR
submissions.
The SFA calculates
the funding due to
the provider and
payment is made.
The employer pays
the agreed
contribution.

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Delivery and achievement
A training provider
from the list of pre-
approved training
providers has an
ancillary agreement in
place to provide
training to a levied
employer.
Providers submit on
a monthly basis an
ILR containing:
• Start Date
• Employer
• Apprentice
Details
• Learning aim
code
• Agreed price
SFA checks that
the details in the
ILR match with
the details in
digital
apprenticeship
service
The SFA will
calculate the funding
earnt by the provider.
• SFA pays from
levy at full value
• SFA pay any
outstanding
balance at co-
funded rate
The provider will
submit evidence
of completion to
the SFA.
The SFA are able to
track government
funding being used
to pay providers for
apprenticeship
training.
Trigger:
Apprenticeship
Start
Provider submits ILR Double Lock
Calculate funding&
payment
Achievement
Payment.
End point assessment
if required
OUTPUT:
Apprenticeship
certification
completed

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View the current balance
of your levy and expiring
funds that you might lose

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Key funding policy decisions
• Single funding model
• 10% monthly top-up
• Approach to co-investment
• Funding of 16-18 year olds
• Funding for additional needs
• Funding for English and maths training
• Incentives

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Key funding policy decisions – in
discussion
• Approach to funding equivalents and lower level
qualifications
• Level of co-investment
• Transfer of funds between employers
• Setting of price bands