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Apprenticeship levy

Changes for employers who Will pay the levy

Who is likely to be affected
This will affect employers in all sectors. The levy will only be paid on annual paybills in excess of £3 million, and so less than 2% of UK employers will pay it.

General description of the measure
The Apprenticeship Levy will be a levy on UK employers to fund new apprenticeships. In England, control of apprenticeship funding will be put in the hands of employers through the Digital Apprenticeship Service. The levy will be charged at a rate of 0.5% of an employer’s paybill. Each employer will receive an allowance of £15,000 to offset against their levy payment. It will be introduced in April 2017.

The government is committed to boosting productivity by investing in human capital. As part of this, the government is committed to developing vocational skills, and to increasing the quantity and quality of apprenticeships. It has committed to an additional 3 million apprenticeship starts in England by 2020. The levy will help to deliver new apprenticeships and it will support quality training by putting employers at the centre of the system. Employers who are committed to training will be able to get back more than they put in by training sufficient numbers of apprentices.

Changes for employers who don’t pay the levy

Support with apprenticeship costs.
Non-levy paying Companies with less than 49 staff placing anyone aged 16-18 on Apprenticeship training will receive full funding.

For anyone aged 19+, employers will share the cost of training and assessing their apprentices with the government - this is called ‘co-investment’.

Non-levy paying employers with 50+ staff placing anyone aged 16-65 on Apprenticeship training will also be under the ‘co-investment’.

This means from May 2017, you will pay 10% towards to the cost of apprenticeship training and government will pay the rest (90%).

If you would like to know more please call the office on 0161 428 3080 to speak with an advisor or contact us via email