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Apprenticeships

Apprenticeships

Levy

The Apprenticeship Levy is part of the government's plan to increase the quantity and quality of Apprenticeships. The Levy is a new tax which aims to fund three million new Apprenticeships in England by 2020. All UK employers who have a total employee pay bill above £3m a year will pay the Levy.  This includes public and private sector, charities and educational providers such as academy groups and universities.If an orgnaisation has a pay bill less than £3m it will not have to pay to Levy. In England, organisations will still be able to access government support for apprenticeships through other training providers. 

You can buy-in from a provider or deliver the training yourselves, but the training must be delivered by an approved provider. If you are a provider and wish to deliver Apprenticeships, your organisation needs to register as an approved provider and will be subject to Education and Skills Funding Agency (ESFA) quality arrangements and Ofsted Inspection. 

Non Levy

As a non-Levy payer, you will have an annual pay bill of under £3 million.Non-levy paying employers will share the cost of training and assessing their apprentices with government - this is called ‘co-investment’. From May 2017, non-Levy paying employer will pay 10% towards to the cost of apprenticeship training with the government paying the rest (90%). 

Every individual Apprenticeship framework and standard will be allocated to a funding band. The upper limit of the funding band will cap the maximum price that government will ‘co-invest’ towards. Bang 9 apprenticeships have a maximum price of £9,000. If an employer and training provider agree on a price of say £8,000, then the governement would invest £7,200 (90%) and the employer would invest £800 (10%). This £800 could be paid by the employer to the training provider over monthly instalments. 

Small employers, with an employment force of under 50 are entitled for the governement to pay 100% of the apprenticeship costs. This is with the aim to encourage smaller companies to take on young employees and train them up within the workforce. 



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