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The Apprenticeship Levy: What You Need To Know

The Apprenticeship Levy: What You Need To Know

(Posted on 09/08/16)

Apprenticeships combine on-the-job training with classroom learning. Apprentices train towards gaining nationally recognised qualifications and essential skills whilst working and receiving a wage.

Apprenticeships follow a four part programme. At college, participants earn their technical certificate and functional skills, whilst onsite they work towards their NVQ in a way that will benefit your organisation.

From 16th April 2017, the way apprenticeships are funded is changing. 

Rather than employers accessing funding through training providers or colleges, they will be able to procure the training themselves. 

The government is introducing an Apprenticeship Levy, which enables employers to procure the training they require by way of digital vouchers, purchased from the Digital Apprenticeship Service, that can be used to fund training.

Organisations with an annual pay bill of over than £3million will pay a 0.5% levy to fund apprenticeships. Employers will have an allowance of £15,000 to offset against their levy payment.

The levy will be charged at a rate of 0.5% of your annual pay bill. You will receive an allowance of £15,000 per annum to offset against your levy payment. You will only pay the levy if your pay bill exceeds £3million in a given year.

From October 2016, employers can access the Digital Apprenticeship Service, which will enable them to select the appropriate apprenticeships, choose a training provider and pay for apprenticeship training and assessments.

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