Myth 1- “As my levy funds expire after 24 months then I cannot use them to fund all of an apprenticeship that lasts longer than 24 months!”
New funds enter your account every month for as long as you declare levy payments, so the fact that your funds expire 24 months after entering your account doesn’t stop you meeting the full costs of an apprenticeship that lasts longer than 24 months.
The costs of an apprenticeship are spread over the full length of the apprenticeship and are met in monthly instalments. The oldest funds in an account are taken first, to minimise the risk of funds expiring.
Apprenticeship funds will only be taken out of your account 24 months after they enter it unless you:
1. Spend them on apprenticeship training and assessment. –
2. Fund an apprenticeship with another employer through transfers.
3. If you do not have sufficient funds in your account, you will need to co-invest with the government to cover the monthly cost. The government will pay 95% of the balance due and you will need to pay the remaining 5% direct to your training provider.
Myth 2 - “If you don’t spend all your levy, it gets spent by the central government on other things!”
The apprenticeship levy funds all apprentices currently in training, those already in an apprenticeship and those just starting, those working for employers who pay the apprenticeship levy and those working for employers who do not pay into the levy.
Myth 3 - “Apprenticeships are only entry-level – they are for low skilled people”
Apprenticeships are available from Level 2 (GCSE equivalent) right through to Levels 6 and 7 (equivalent to a Bachelor’s or Master’s degree). Some apprenticeships may also offer additional professional qualifications, such as ACCA.