In May 2017 the way the government funds Apprenticeships in England is changing. Some employers will be required to contribute to a new Apprenticeship Levy and there will be changes to the funding for Apprenticeship training for all employers.
The levy requires all employers operating in the UK, with a pay bill over £3 million each year to invest in Apprenticeships. It will be paid at a rate of 0.5% of an employer’s wage bill and will be paid through Pay As You Earn (PAYE) from April 2017.

• If you have a wage bill in excess of £3 million per annum, you will need to pay the Levy
• The levy will be charged at a rate of 0.5% of your annual pay bill
• There is a £15,000 allowance
• Your contribution will be held in a digital account
• All funds will be topped up by 10% through a government contribution
• You have 24 months to spend money in your digital account
• If you don’t pay the levy, the government will pay 90% of the cost of an Apprenticeship
• If you are a small employer with under 50 staff, the government will pay all training costs for a 16-18 year old Apprentice
• Although this is designed as an employer led system, employers are required to pay the training provider for the delivery of Apprenticeships
• Employers who don’t pay the levy will not be required to purchase Apprenticeships through a digital account until 2018

The current Apprenticeship system still stands until April 2017.
Should you have any queries or require any support with regards to the Apprenticeship Levy, please contact the Business Development Department on 0161 877 4078.