The apprenticeship levy offers an innovative opportunity and approach to recruiting, training and retaining the best employees and graduates in order to benefit your business. Find out more below about how we can support you through your levy application and process’
What is the Apprenticeship Levy?
The Apprenticeship Levy is a levy on larger employers to fund apprenticeships and applies to both public and private sectors. If your business wage bill is over £3 million, your company will pay the Apprenticeship Levy of 0.5% of your annual wage bill. The levy is administered by the Digital Apprenticeship Service, and collected from the PAYE system.
Employers who pay the levy can use these funds to cover apprenticeship training costs. The cost of the training depends on the apprenticeship level and industry sector. Further details can be found on the Government website.
If your business wage bill falls below £3 million then you do not pay the levy. You can benefit from the co-funding scheme and receive 95% government funding to support apprenticeship training. An employer that does not pay the levy will contribute 5% of the programme and assessment costs. Non-levy paying employers need to apply for Reserved Funding to access the co-investment model to benefit from this funding.
Both levy and non-levy paying employers can benefit from additional payments to support their apprentices. Employers can receive an additional payment of £1,000 in respect of apprentices aged 18 on the start date of the programme, or an apprentice aged up to 24 who has previously been in care or has a Local Authority Education, Health and Care Plan.
For further information, please see the Government’s website
In any 12-month period, non-levy paying businesses can apply to reserve funding for up to ten employees. For employers wishing to train more than three employees it may be possible to benefit from levy-transfer funding, which is funding accrued by a larger employer who has not fully utilised their levy. We have an allocation of funding to support non-levy businesses. Contact us for further details.
Current government financial incentive to recruit an apprentice:
Are you aware of the new and extended incentives available for employers who create apprenticeship opportunities in their businesses?
Employers who hire new apprentices, with contracts starting before 31 March 2021, will benefit from the following:
For apprentices aged:
16 to 24, employers will receive £2,000
25 and over, employers will receive £1,500
The payment is in addition to the £1,000 employers already receive for hiring an apprentice:
- aged 16 to 18 years old
- under 25 with an education, health and care plan or has been in the care of their local authority
Further information and details of how to apply can be found here
We can help
We will support you through the above registration and application process. Please email or call and we will discuss the options with you.
Tel: +44 (0)1772 895500