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The University of Southampton
Human Resources

Staff apprenticeships - Funding

The Apprenticeship Levy and its implications

The contents of this section reflect Government policy, which may be subject to change.

The apprenticeship levy requires large UK employers, including the University, to contribute to the costs of funding apprenticeship training and assessment.

The University can access levy funding, but can only use these funds to pay for training and assessment costs which are incurred through approved apprenticeship training providers (please see here for more detail on procuring training providers). The University is not able to use levy funds to pay for other costs associated with employing apprentices including, for example, wages/salary, travel, administrative or managerial costs. The skills funding guidance provides more information on the criteria that must be met.

There are a number of funding bands which set the maximum amount of levy funding that the University can claim for training an individual apprentice. Funding bands vary according to the level and type of apprenticeship standards being offered (e.g. more expensive, higher quality apprenticeship standards are likely to be in a band with a higher limit).

Hiring managers will need to ensure that the cost of apprenticeship training charged by the training provider falls within these funding bands. If the negotiated price is more than the maximum allowed by the funding bands, then the employing department would have to pay the difference between the band maximum and the agreed price. This would only be allowed in exceptional cases and would require a business case to be agreed by the relevant Dean/Executive Director or their nominee.

As part of the process of negotiating a contract with the Training Provider, it is the hiring manager’s responsibility to obtain the Training Provider’s Unique Provider Reference Number (UPRN). This must then be forwarded to the HR Recruitment Team via the OSRF form to enable the Recruitment Team to identify the Training Provider in the digital Apprentice Service tool. This then enables the Training Provider to draw down from the University’s apprenticeship levy fund.

It is important that the line manager notifies HR Transactions, by raising a ticket via Service Now, of any changes to the employee’s status during the apprenticeship (e.g. pause of, or early cessation of, the apprenticeship). HR Transactions will then formally update the Training Provider via the digital Apprenticeship Service prompting the Training Provider to pause, or cease, drawing down from the University’s apprenticeship levy fund.

The Government offers extra financial support to Training Providers for the following categories of apprentice:

The Government will pay training providers directly where this training is required

It is important to note that the Equality Act 2010 prohibits various forms of discrimination (including age and disability) in employment and vocational training and therefore a candidate’s age or disability should not influence employment decisions.

Financial management

Line Managers must ensure that training providers are engaged in accordance with the University’s procurement policy and procedures and the guidance provided here .

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