Apprenticeships Levy

What is the Apprenticeship Levy?

In May 2017 the Apprenticeship Levy was launched, which is a fundamental change to the way Apprenticeships are funded. This will aim to boost productivity and support the achievement of the Government achieving the target of 3 million Apprenticeships by 2020.

Although the Levy will currently only affect businesses with an annual payroll in excess of £3m, there are changes to Apprenticeship funding for Non-Levy paying employers.

Levy Employers

The new Levy places control of Apprenticeship training into the hands of you, the employer. It means employers can invest in new apprentices or current staff, enabling them to upskill. The funds held in accounts will be used by employers to pay ‘approved training providers’ such as Riverside College, for Apprenticeship training.

Government Top-Ups

Employers who pay the Levy and provide Apprenticeship training will also be able to claim back more than they put in as the Government will apply a 10% top-up to monthly funds.

Non-Levy Employers

The Government proposes to co-invest towards Apprenticeship training, so non Levy-paying employers will contribute 10% towards the cost of Apprenticeship training and the Government will pay 90%.

For employers with less than 50 employees, the Government has proposed to waive the co-investment element if these employers take on a 16 to 18 year old apprentice – the cost of training a young person will be free.

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