Apprenticeship Levy

What is the apprenticeship levy?

The apprenticeship levy is the government initiative applied to large employers across all industries to make an investment and contribution to the growth of apprenticeships. The aim behind the initiative is to help fund three million new apprenticeships by 2020.

If your organisation, including any connected companies or charities, for example local authority schools, has an annual pay bill of more than £3 million you will pay the apprenticeship levy. If you pay the levy and want to employ an apprentice you’ll need to:

Create a new account, or sign in if you’ve already registered.

If you’re not a levy payer, you can’t access any funds through this service.

Once the levy has been paid, employers will be able to access funding for apprenticeships through a new digital apprenticeship service account. This can be used to pay for the training and assessment of apprentices in England and also has the facility to search for relevant training providers.

Employers that don’t pay the levy

The way apprenticeships are funded is changing for all employers, not just those who will have to pay the levy. Employers who don’t have to pay the levy will be required to contribute to the cost of the training in a smaller way. This contribution will be paid directly to the training provider. The government will fund the rest. This is called co-investment.

Employers who do not pay the levy will not need to use The Apprenticeship Service (TAS) to pay for apprenticeship training and assessment until at least 2018 however The Apprenticeship Service will help all employers to:

Please follow the below links for information on the changes and how frameworks are changing to standards.

https://www.gov.uk/government/collections/apprenticeship-changes

https://www.gov.uk/government/collections/apprenticeship-standards

For more information or to talk to someone about the changes please call us on 01423 536672.