The Apprenticeship Levy
In April 2017 the government are introducing the Apprenticeship Levy, a new funding initiative designed to improve the quality of apprenticeship training across the UK, and encourage employers to take on more apprentices.
The Apprenticeship Levy Employer Information Evenings
We are delighted to be running a series of free events for employers to help provide information on what the levy means for businesses big and small, and how their organisation can prepare for change. More information will be available soon.
Frequently Asked Questions
How will the levy be paid?
Employers across all sectors will pay the levy at a rate of 0.5% of their annual pay bill, however they will also receive a levy allowance of £15,000 per year to offset against their payment. This effectively means that only employers whose pay bill exceeds £3 million each year are required to pay the levy. The levy will be paid to HM Revenue and Customs (HMRC) via the Pay as You Earn process.
How will employers access their levy fund?
Employers will access the payments they have made (their levy fund) via a new Digital Apprenticeship Service (DAS). The DAS will allow employers to make use of their levy fund by enabling them to perform various tasks in connection with apprenticeship training such as selecting an apprenticeship framework, choosing a training provider, choosing an assessment organisation and advertising apprenticeship vacancies.
What can the levy fund be spent on?
The levy fund can be spent on government approved apprenticeship training. In order for a training programme to qualify for funding via the levy fund, the apprentice must be aged 16 or over, working 30 hours a week or more, earning at least the minimum wage rate for an apprentice, and be allocated time off to study during their working hours.
Have questions that need answers?
Our information booklet covers the levy in more detail and answers Frequently Asked Questions (FAQs) from employers. Download our information booklet here