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 started paying an additional monthly compulsory tax of 0.5% of the PAYE bill from the 1^st April 2017.

For organisations that are subject to this apprenticeship levy you are automatically entitled to a £15,000 allowance, each year. So, when the levy is calculated you don’t pay the first £15,000.

Levy example

Annual PAYE bill £6 million x 0.5 = £30,000

Less the levy allowance of £15,000

Leaving annual levy of £15,000 (paid in monthly installments monthly in to your digital account) plus a government top up of 10%

Leaving a total of £16,500 per year to pay for apprenticeship training.

As funds are added into the digital apprenticeship service account (DAS) each month at 0.5% of the PAYE bill, it automatically gains a 10% top up from the government.

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 from a provider listed on the Register of Apprenticeship Training Providers (RoATP). eTraining are proud to to be an approved RoATP training provider.

An individual must also meet the apprentice eligibility criteria (age, residency) and the levy 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?

The funds will expire after 24 months of entering the DAS account.

How are my funds spent?

Apprenticeships are paid for monthly from your digital account, over the duration of the course, and cannot be paid in a lump sum. This means to utilise the full levy fund courses need to be started as quickly as you can so that the monthly payments have time to accumulate and reach the full amount before the funds expire.

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

Once the funds in your DAS account run out or are insufficient to pay for full courses, you will be treated in the same way as a non-levy paying company. This means 95% of the course costs will be funded for you and you will only have to make a 5% contribution. Please see below for more details.

What happens if I do not use all my funds?

Any expired funds will be claimed by the government as a tax, to be used to help fund the “co-funded” training in other companies.

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 would then receive directly from the ESFA making thing very simple and straight forward for you.

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

In this system, the ESFA will fund 95% of the course cost and only require organisations to pay 5% of the costs, directly to the training provider.

Non-levy example

Course cost £2500

ESFA Funding £2375

Employer Contribution £125

Frequently asked questions by non-levy payers

When do I have to pay the 5% costs?

To receive funding, the employer’s contributions must be paid in advance of funding being received, this means payment is usually made before the course starts.

eTraining can work out a payment plan for any employer starting multiple apprenticeships at once depending on number of learners and course costings, however to receive funding it is a mandatory requirement that the employer has always paid 5% of the ESFAs contribution at any one time; please ask for further information.

What can the funding be spent on?

eTraining can help you access funds for new apprenticeship training for existing staff or new recruits, so long as the training meets an approved standard.

An individual must also meet the apprentice eligibility criteria (age, residency) and 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.

What happens if someone leaves the course?

Don’t worry, in the unlikely event your employee leaves the course before it is finished, we can still claim the funding up to the point they left so there would be no additional fees.

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

eTraining deal with the whole process for you. We ask you to complete a couple of simple forms with us, once these are complete we will induct each learner and process all paperwork to gain the funding directly from the ESFA.