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<p>The apprenticeship levy is collected by Her Majesty’s Revenue and Customs from
all UK employers with a pay bill above £3 million. Scotland, Wales and Northern Ireland
receive a share of levy funding and it is for the devolved administrations to decide
how their allocations should be used. The Department for Education’s annual apprenticeship
budget for England is set by Her Majesty’s Treasury and, although closely linked,
is distinct from the total levy income collected. The levy has been set at a level
to fund demand for apprenticeships in employers of all sizes.</p><p>In the 2021-22
financial year, funding available for investment in apprenticeships in England is
around £2.5 billion, double that spent in the 2010-11 financial year in cash terms.
Details of the apprenticeship budget spend for each financial year are included in
the Education & Skills Funding Agency’s Annual Report and Accounts.</p><p>Employers
in England are able to access their apprenticeship levy contributions, plus a 10%
government top up, via their digital apprenticeship service accounts. Employers can
use these funds to pay for apprenticeship training and assessment in their business,
or they can transfer them to support apprenticeships in other businesses. Employers
have 24 months to use their funds once they enter their apprenticeship service account
before they begin to expire on a rolling, month-by-month basis.</p><p>As of 30 September
2021, the total balance of available funds in levy-paying employers’ Apprenticeship
Service accounts is £4.81 billion. This represents funds that employers have contributed
and are able to spend over a two-year period.</p><p>We do not anticipate that all
employers who pay the levy will need or want to use all the funds available to them,
but they are able to if they wish. As well as funding new apprenticeships in levy-paying
employers, income from the levy funds new apprenticeships in employers that do not
pay the levy, existing apprentices that started in previous years, and additional
payments to employers and providers.</p>
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