Education and Skills Funding Agency (ESFA)

The ESFA brings together the former responsibilities of the Education Funding Agency (EFA) and Skills Funding Agency (SFA) to create a single agency accountable for funding education and skills for children, young people, and adults.

About Education and Skills Funding Agency (ESFA)

What do they do?

The ESFA are accountable for £65 billion of funding for the education and training sector, ensuring timely and accurate allocations and payment of education and skills funding to academy trusts, local authorities, colleges, and training providers.

They provide assurance that public funds are properly spent, achieves value for money for the taxpayer and delivers the policies and priorities set by the Secretary of State.

What is the ESFA Vision?

To support, develop and fund world-class education and skills provision so that every learner can reach their potential, regardless of background.

What is the ESFA Mission?

To ensure timely and accurate allocations to ESFA providers, whilst ensuring that public funds are properly spent, there is value for money for the taxpayer and financial health and sustainability of providers is achieved while continuing to support policy and delivery activity.

Salford University work closely with the ESFA to ensure compliance and quality is met and adhered to and the funding rules are embedded in all parts of the delivery of Apprenticeships.

The ESFA Funding rules are updated yearly and any changes are implemented for Apprentices who are inducted from the 1st of August. The rules are available on the page and the new rules will be uploaded in August 2023.

Funding and The Apprenticeship Levy

The Apprenticeship Levy was initiated by the UK government in April 2017, for all employers paying a wage bill of more than £3 million per year. Employers that meet this criterion are now required to pay 0.5% of their payroll each month as a levy tax. This levy can then be reinvested back into their workforce in the form of Apprenticeship training.

  • If you pay the apprentice levy, your contributions can be used to fund the course costs.
  • If you do not pay the levy or have exceeded your levy funds, the government will pay at least 95% of the cost.

If you are a Levy Payer (your pay bill is more than £3 million)

If your available levy funds covers the cost of the course then you will not require to pay any additional costs.

You can also get a £1,000 support payment from the government, if one of these applies for your apprentice:

  • is under 19 when they start the apprenticeship
  • is under 25 and a care leaver when they start the apprenticeship
  • has a local authority education, health and care plan

If you are a Non-Levy Payer (your pay bill is more than £3 million)

The government will contribute at least 95% of apprenticeship fees.

You could get a £1,000 support payment from the government, if one of these applies for your apprentice:

  • is under 19 when they start the apprenticeship

  • is under 24 and a care leaver when they start the apprenticeship

  • has a local authority education, health and care plan

If you employ less than 50 employees and your apprentice is under 19 at the start of apprenticeship, the government will pay 100% of the apprenticeship fees.

How to register and use the apprenticeship service as an employer