What is the Apprenticeship Levy?


Essentially this means the levy is designed purely to encourage employers to support apprenticeships. Here at Abacus we fully support all students with their apprenticeships, making sure that they get the best grade possible! Also, to make sure that the student is going on the correct path for the future role. The government are ensuring that the way the apprenticeships are funded and the with the basis which a business works with a training provider are changing rapidly. The idea is that it encourages employers to embrace apprenticeships as a way of meeting their current and future skills gaps.

The levy will be introduced from April 2017 but for now the current system is still in place.  Employers with a wage bill of more than £3 million will have to pay a 0.5% levy to fund apprenticeships. Non-levied employers must contribute 10% of the total training costs for the apprenticeship training. Employers with less than 50 employees will not pay for the training of an apprentice aged 16-18. Employers can access their apprenticeship funding once they have declared their liability to HMRC (HM Revenue & Customs.)

Here are a few facts on the Levy:

  • More than £60 million to be invested in training for apprentices from the poorest areas in the country.
  • An extra 20 percent of funding to providers to train 16-18 year olds
  • The levy can only be spent on apprenticeship training with approved providers such as Abacus Academy
  • The Apprenticeship Levy can be used on existing employees if the training meets an approved standard or framework.
  • The Levy will not affect the way the company fund training of apprentices who started their programme before May 2017