As part of the Apprenticeship Levy scheme and Apprenticeship reforms, the government is setting up a Digital Apprenticeship Service.
Once you have declared the levy to HMRC, you will be able to access funding for Apprenticeships through a new Digital Apprenticeship Service (DAS). Levy-paying companies will be notified directly.
Once your Digital Apprenticeship Service Account is set up and you have paid your first levy payment, you will be able to pay for apprenticeship training and assessments directly from the account.
If your company does not pay the levy, you can still use the service to search for an appropriate approved training provider.
From 2020 you will also have to use the Digital Apprenticeship Service system to pay training providers as well.
There are two elements to the top up system:
For those paying the levy, the government will top up monies in their digital accounts by 10% every month so that “businesses get out more than they put in”. This credit will appear in your account in arrears.
If you do not have sufficient funds in your Digital Account to pay your training provider in any one given month, then you will be asked to pay the difference to the training provider direct. You can spread this cost over the life of the Apprenticeship.
Provided that the total cost does not exceed the maximum funding band for that Apprenticeship, the government will fund 90% of these additional costs.
What can I spend my funds on? Can it include existing staff?
You can spend your digital training funds on external training and assessment for a new apprentice. You can even turn your existing staff roles into Apprenticeships provided:
- the employee will be learning new skills/knowledge
- the apprenticeship is relevant to their role
- the apprenticeship is the most appropriate way towards progressing their career and the training must be provided by an approved provider (such as City College Brighton and Hove).
Lower level Apprenticeships may also be offered to those employees with an existing higher qualification (e.g. a degree) provided that they are going to learn a completely different set of skills.
Your Levy payments and government funding cannot be used for:
- travel and subsistence costs
- managerial costs
- work placement programmes
- the costs of setting up an Apprenticeship programme
You have up to 24 months to spend the money in your Levy account before the funds expire, so make sure you use them.
For further advice on the Apprenticeship levy, Contact City College today to find out how they can support you with your Apprenticeship Training requirements. Call 01273 667 778 ext: 2529 or email firstname.lastname@example.org.