In spring 2017 the way the government funds apprenticeships in England is changing. Some employers will be required to contribute to a new apprenticeship levy and there will be changes to the funding for apprenticeship training for all employers.
The apprenticeship levy requires all employers operating in the UK, with a pay bill over £3 million each year, to make an investment in apprenticeships. You can benefit from this investment by training apprentices.
Further information regarding the apprenticeship levy can be found here (link to https://www.gov.uk/government/publications/apprenticeship-levy-how-it-will-work/apprenticeship-levy-how-it-will-work)
Frequently Asked Questions
What is the £15,000 allowance?
Levy payers will have an allowance of £15,000 per year to offset against the levy they will pay.
How will the levy be collected?
The levy will be collected through the Pay as You Earn (PAYE) process, directly to HM Revenue and Customs.
How does it work?
Levy payers will pay it on their entire pay bill at a rate of 0.5%; however, they will have that amount offset against the £15,000 allowance (see above)
Is there a time limit on when to use the levy ‘pot’?
Yes, and we think this will be between 18-24 months. If not used within that period, the funds will be transferred to the overall amount available to the government.
How does it benefit our organisation?
You can ‘reclaim’ the levy paid, plus the ‘top-ups’ the government will provide, to spend on apprenticeship training within your organisation, in the form of e-vouchers. This funding will be in your hands, to go to the training provider you choose.
Is this only for 16-18 year olds?
No. The scheme is applicable to all ages, whether new staff or existing staff (provided it is relevant to their existing or changed job role). Please note that the information provided is correct at the time of printing, and is subject to change