Female apprentice in factory

Apprenticeship Levy

Our Aim Is To Simplify The Levy Process

At kickstart2employment, we are committed to supporting the training needs of businesses operating throughout the UK. As specialists in the management and facilitation of apprenticeship schemes, we have the expertise to guide you through the recently introduced Apprenticeship Levy. Our Post-Levy Managed Service will ensure you optimise apprenticeships and the many benefits they offer within your organisation.

In April 2017, the government changed the funding, delivery and assessment of apprenticeships in an effort to boost the skills of the UK workforce. The most significant change being introduced is the Apprenticeship Levy, which will see funds being allocated directly to employers rather than colleges. Employers with a wage bill in excess of £3m will be required to pay the Apprenticeship Levy. This will be 0.5% of the employer’s total wage bill, paid through PAYE. Employers will receive a £15,000 allowance from the government to subsidise this cost. Additionally, levy payers will also receive a 10% top up from the government on their contributions.

It is expected that only approximately 2% of UK employers will pay the levy. For those employers who do not pay the levy (98%) they will benefit from co-investment. In simple terms, for every £1 paid by the employer towards the cost of apprenticeship training the government will contribute £9.

A new Digital Apprenticeship Service (DAS) has been set up, which can be accessed by both levy payers and non-payers. Levy payers will be given an account from which they can draw down allocated funds. Both levy and non-levy payers will be able to identify and access suitable apprenticeship programmes, as well as approved training providers and assessors via DAS. Non-levy payers will be required to pay 10% of the apprenticeship costs, with the government funding the remaining 90%.

This new system is intended to be employer led, with the employer, for the first time, having control over where and how they spend their apprenticeship funding. Historically, this funding has been paid by government to colleges and other training providers. Employers will be expected to negotiate the content and the cost of their apprenticeships with colleges and training providers. Colleges and training providers will be expected to sell their services and negotiate fees with employers.

Key facts:

The government’s vision is to quickly advance wider skills throughout all levels and competencies of UK organisations. The introduction of the new Apprenticeship Levy and Apprenticeship Standards, which are currently being phased in, offer a number of benefits for employers. Not least is the fact that existing employees, regardless of tenure or age, can participate in an apprenticeship scheme. However, the information circulated by the government and press regarding the Apprenticeship Levy is complex. We can assist your company by implementing and managing the levy programme to ensure your business optimises its use of the service aligned with your strategic goals.

At kickstart2employment, we can help you to plan your training provision effectively and confirm what you are required to pay, depending on your annual wage bill. We will work with you to define your goals and measure required outcomes to help drive economic growth and stability through training and development. Additionally, using our network of highly skilled assessors, we can ensure that your organisations specific needs are catered for throughout the process.

Get in touch with us today to find out more
call 01978 806 285 or email info@kickstart2employment.com