The Apprenticeship Levy
The UK Government is introducing the Apprenticeship Levy in April 2017 to fund a step change in apprenticeship numbers and quality - delivering on the commitment that there will be 3 million apprenticeship starts by 2020.
The Levy will put apprenticeship funding on a sustainable footing and improve the technical and professional skills of the workforce.
The Levy is 0.5% of employers’ total company payroll collected monthly via PAYE (where the payroll cost exceeds £3 million) minus an allowance of £15,000. Individual employers’ funding will then be made available via a new digital account, through which employers will be able to pay for training for apprentices.
Employers (based in England) will be able to direct funding towards the apprenticeship training they want through a new Digital Apprenticeship Service (DAS). The Service will also support employers to identify and pay a provider, choose an apprenticeship training course and find a candidate. Employers will be free to spend their money on the apprenticeship training which they judge best meets their needs.
Do all employers have to pay the Levy?
Employers with a payroll of less than £3 million will not have to pay the Levy. (Most employers fall into this group.) These employers will continue to have access to government funding to support apprenticeships. All employers will have access to the Digital Apprenticeship Service and will be able to use it to manage the Government funding available to them to pay for apprenticeship training.