Heard of the apprenticeship levy? Confused by what it means? We’ll help you find out more.
What is the apprenticeship levy?
The apprenticeship levy has been created by HM Government as a key way to fund and encourage increased uptake in apprenticeships. It will be introduced in April 2017, and will only be payable for employers with a payroll in excess of £3 million. It will be set at a rate of 0.5% of the wage bill and collected via PAYE. The levy is expected to double the funding that is available for apprentices to £3 billion per year by 2020 and will fund the government’s target of 3 million new apprenticeship starts.
The top 5 things you need to know about the apprenticeship levy:
- Employers with a pay bill in excess of £3 million will pay the levy.
- The levy will be at a rate of 0.5% of the total annual pay bill and will be paid through PAYE.
- Funds will be accessed through a new Digital Apprenticeship Service -employers will be able to register for an account from January 2017.
- Funds will appear in the account monthly and Government will apply a 10% top up payment.
- Levy funding can be only be spent on apprenticeship training and assessment with approved providers - like QA Apprenticeships.
For employers who wish to deliver some or all of their apprenticeship training internally, they will need to be approved as a provider. This is expected to be similar to the process for all providers, and government will publish more detail on the new approach later in the year.
QA are the apprenticeships experts – we can help you understand how apprenticeships can work in your business.
We can offer advice on the possible approaches to expanding existing programmes or implementing them for the first time. We will help you make the most out of the apprenticeship levy, by recruiting apprentices to not only balance the books but to provide the top-notch talent your business needs.