What is the Apprenticeship Levy?

In May 2017 the government implemented a new Apprenticeship Levy on large employers, to fund new apprenticeships. UK based employers with a pay bill over £3 million are required to invest in Apprenticeships.

How does it work?

Employers will pay a levy which is expected to be 0.5 per cent of your pay bill. This will be paid into a central fund where you’ll access vouchers to fund the training of your own apprentices. You’ll receive an allowance of £15,000 to offset against your levy payment.

Why Apprenticeships matter?

Apprenticeships are beneficial to employers for many reasons such as:

  • Increasing employee satisfaction
  • Increasing staff loyalty
  • Reducing recruitment costs
  • Better serving your customers
  • Being a leader in the cultivating the next generation of workers.

 

What does the Apprenticeship Levy mean for you?

I have… less than 50 employees and a salary bill of under £3 million

If you have less than 50 employees and a salary bill of under £3 million then you will receive fully funded free training for apprentices aged between 16 & 18. To add to this, funding is also available to train up existing staff or recruit apprentices. There is also a £1,000 cash incentive.

I have…over 50 employees and a salary bill of under £3 million

If you have over 50 employees, a salary bill of under £3 million and want to recruit an apprentice aged 19+ then you will be expected to contribute 10% of total training costs. There is also funding available to train up existing staff or recruit apprentices.

I have…a salary bill of over £3 million

If you have a salary bill of over £3 million you will be expected to contribute 0.5% of your annual salary bill into the Apprenticeship Levy. This will allow you to train existing staff or recruit apprentices using funds that will be located in your digital account. After 18 months these funds will expire. You will get out more than you put into the apprenticeship levy as for every £1 that you put into your digital account you get £1.10 to spend.

If you would like to talk to somebody…

To find out more how we can support you with the Apprenticeship Levy changes and what it may mean for your business, don’t hesitate to contact us today and we will be in touch.

 

If you are required to contribute 10% of the total training costs, please see below for a table of available courses and their associated costs:

Level 2 Qualifications 
Name10% Contribution
Intermediate Apprenticeship in Business & Administration £200
Intermediate Apprenticeship in Children & Young People's Workforce £200
Intermediate Apprenticeship in Customer Service£150
Intermediate Apprenticeship in Health & Social Care£150
Intermediate Apprenticeship in Team Leading£150
Intermediate Apprenticeship in Cleaning and Environmental Support Services£150
Intermediate Apprenticeship in Facilities Management £150
Level 3 Qualifications 
Name10% Contribution
Advanced Apprenticeship in Health & Social Care £200
Advanced Apprenticeship in Management £200
Advanced Apprenticeship in Children & Young People's Workforce £250
Advanced Apprenticeship in Customer Service £200
Advanced Apprenticeship in Residential Childcare £250
Advanced Apprenticeship in Business Administration£250
Level 5 Qualifications 
Name10% Contribution
Higher Apprenticeship in L5 Care Leadership and Management £200
Higher Apprenticeship Level 5 Leadership and Management £250