Apprenticeship Levy employer guidance

Our Apprenticeship Levy employer guidance has been put together to help you, the employer, understand how you can benefit from the changes the Levy has brought. This guidance answers some typical questions employers have about these changes. Continue reading to discover the answers to the following questions.

1. What is the Apprenticeship Levy?
The Apprenticeship Levy was announced by the government in the summer of 2015. This Levy comes in the form of a contribution from companies with the highest wages. By 2020, the government hopes to be able to fund 3 million new apprenticeships. All this is going to be paid for by the Apprenticeship Levy.

2. When did the changes happen?
The changes took effect in April 2017. The Levy is paid through the existing PAYE system. Employers with annual wages of £3,000,000 will be obligated to pay the Apprenticeship Levy at the rate of 0.5%.

3. How does the new system work?
The new system has been specially designed to allow employers across England more control when arranging training and assessment for their apprentices. This has been planned to enrich the workforce with properly trained personnel. At the moment is it thought that 2% of businesses pay the Levy. Employers receive a £15,000 allowance which is offset against their Levy payment.

4. How are apprenticeships paid for?
Employers have created an online account, and you are able to use this account to arrange training and assessment for your apprentices. Payment is arranged through your digital account. Many employers receive 95% of the cost for training and assessment. Those with school or care leavers receive an extra 10%. Apprenticeships are placed in funding bands specifying the cost of training. This lets you know how much it’s going to cost for the training of your apprentices.

5. What does this mean for businesses?
The Apprenticeship Levy creates more opportunities for employers and young apprentices. With more apprentices undergoing training, England’s workforce is going to become more skilled in the years leading up to 2020. Whether you have a small or large business, apprenticeships are likely to be a part of your company’s future. With greater flexibility in crafting apprenticeships, employers have more choice with the changes that have taken place.