Document prepared by Una Bennett, Deputy Director- Funding Mechanism. Information about the apprenticeship levy for employers, how they are expected to pay the levy and access funding. It also explains the standard process for non-levy payers.

1. The Apprenticeship Levy
and the
Digital Apprenticeship Service
Una Bennett
Deputy Director - Funding Mechanism

2. 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

3. Employer (levy) commitment
and contracting
TRIGGER:
The digital
apprenticeship
service is
launched
1.1
Employer
registration
1.2
Search and
Select
1.3
Commit levy
funds
1.4
Agree
contracts
OUTPUT:
Levy commitment is
recorded in the digital
apprenticeship service
and appropriate
contracts are in place.
Start Outcome
6April 2017 -
HMRC begins
collecting the
apprenticeship levy
from employers
who contribute.
Digital
apprenticeship
service goes live.
Digital
apprenticeship
service registration
will verify 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 view
their levy account
balance.
The SFA
maintains a
library of
apprenticeship
standards and a
catalogue of
providers’ course
offerings to help
employers
search and select
the right standard
and provider.
The SFA
provides a
‘recruit an
apprenticeship’
service for
employers.
The employer and
provider agree a
price and the
employer records
the details of the
‘deal’ in the digital
apprenticeship
service initiating
the ‘double-lock’
which will be
confirmed by the
provider via ILR
returns.
The SFA issues
an ancillary
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
begin delivering
the apprenticeship.
The SFA is able to
manage the
apprenticeship
budget by
monitoring and
forecasting levy
commitment.

4. 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.

5. Delivery and achievement
Trigger:
Apprenticeship
Start
3.1
Provider
submits ILR
3.2
Double Lock
1.3
Calculate
funding&
payment
1.4
Achievement
Payment.
End point
assessment if
required
OUTPUT:
Apprenticeship
certification
completed
Start Outcome
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.

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

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

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

9. Next Steps
Summer
2016
Autumn
2016
By end
of 2016
April
2017
SFA publishes
provider guide to
the levy
Indicative funding
details published in
full
Digital
apprenticeship
service search and
select opens
Recruit an
apprentice service
opens
BIS/DfE publish
final funding rates
SFA publishes draft
funding rules
Register of
apprentice training
providers opens for
applications
SFA publish final
funding rules
Full set of final
funding guidelines
published
Access my levy
service opens
New funding model
live

10. Access my levy - screenshot

11. Access my levy - screenshot

12. Access my levy - screenshot

13. Questions
DASenquiries@sfa.bis.gov.uk