Funding

eTraining can and do work with clients in many different ways and this includes the way courses are paid for. Training and development is an essential part of any business and is key to its success and sustained performance. Choosing how to pay for this can be a minefield, but eTraining’s team of Business Managers are here to help should you have any questions.

Funding Pathways

Levy Account – For larger employees
Non-Levy (or Co-Funded) – For medium to small business
Student Loans – For individuals looking to develop themselves
Direct Payment – For employers wishing to pay for unfunded courses or short courses

Levy Paying Employers

eTraining are a registered main provider of apprenticeships and our courses can be paid for via your Digital Apprenticeship Service account (DAS).

All UK employers who have a total employee PAYE bill of over £3 million a year have been paying an additional compulsory tax of 0.5% of the PAYE bill since 1st April 2017.

For organisations subject to the Apprenticeship Levy, you are automatically entitled to a £15,000 annual allowance. This means that when the levy is calculated, the first £15,000 is deducted from your total levy liability. Payments are made monthly into your DAS account.

Levy example

Annual PAYE bill £6 million × 0.5% = £30,000

Less the levy allowance of £15,000
Levy contribution = £15,000 per year

This amount is paid in monthly instalments into your digital account. On top of this, the government adds a 10% monthly top-up.

Total annual funding available: £16,500

As funds are added into the Digital Apprenticeship Service account (DAS) each month at 0.5% of your PAYE bill, they automatically receive a 10% government top-up.

Frequently asked questions by levy payers

What can the levy be spent on?

You can spend the levy funds on new apprenticeship training for existing staff or new recruits, so long as the training meets an approved standard and is delivered by a provider listed on the Register of Apprenticeship Training Providers (RoATP). eTraining are proud to be an approved RoATP training provider.

An individual must also meet the apprentice eligibility criteria (such as age and residency). Levy funds cannot be used to pay for salaries or other staff-related costs.

You will not be allowed to spend an unlimited amount of money on a single apprentice because funding caps are in place according to the level and type of apprenticeship required.

How long will the funds/vouchers last in the DAS account?

Funds will expire 24 months after they enter your DAS account. If not used within this period, they are removed from your balance on a rolling monthly basis.

How are my funds spent?

Apprenticeships are paid for monthly from your digital account over the duration of the course. Payments cannot be made in a lump sum. This means that to maximise the use of your levy funds, courses should be started as early as possible. This gives monthly payments time to accumulate and use older funds before they expire.

What happens if I do not have enough funds in my DAS account ?

Once your levy funds run out or are insufficient to cover the cost of new apprenticeships, you will move to a co-investment model — the same funding system used by non-levy paying employers.

Under this model, the government funds 95% of the course cost and the employer contributes 5%, paid directly to the training provider.

What happens if I do not use all my funds?

Any funds not used within 24 months will expire and be retained by the government. These expired funds are then reinvested to support apprenticeship training across other organisations, such as through co-investment for small businesses.

Non-Levy Paying Employers

eTraining are an accredited apprenticeship provider with the Education & Skills Funding Agency (ESFA). This means we are able to apply for apprenticeship funding on your behalf, which we then receive directly from the ESFA — making the process simple and straightforward for you.

All UK employers with a total employee PAYE bill of less than £3 million per year are entitled to government support with training apprentices via a system of co-funding.

Under this system, the ESFA funds 95% of the course cost, and employers pay only 5% of the cost directly to the training provider.

Non-levy example

Course Cost: £2,500
ESFA Funding (95%): £2,375
Employer Contribution (5%): £125

Frequently asked questions by non-levy payers

When do I have to pay the 5% costs?

To receive funding, the employer’s 5% contribution must be paid in advance of the government funding being released. This typically means payment is made before the course starts.

eTraining can arrange payment plans for employers enrolling multiple apprentices at once, depending on the number of learners and course costs. However, it is a mandatory requirement that employers have paid their 5% contribution for each learner before funding can be drawn down from the ESFA. Please ask us for more information.

What can the funding be spent on?

eTraining can help you access funds for new apprenticeship training for both existing staff and new recruits, provided the training aligns with an approved apprenticeship standard.

The apprentice must meet the eligibility criteria (e.g., age and residency). Additionally, you cannot spend an unlimited amount on a single apprentice — funding caps apply depending on the level and type of apprenticeship.

What happens if someone leaves the course?

Don’t worry – if an employee leaves the apprenticeship early, we can still claim funding for the training delivered up to the point they left. This means there are no additional fees for training that hasn’t been delivered.

Is there a lot for me to do to get the funding?

Not at all. eTraining handles the entire process for you. All we require is that you complete a few simple forms with us. Once that’s done, we’ll induct each learner and process the necessary paperwork to claim funding directly from the ESFA.