What is the Levy?

What is the Levy?


In Spring 2017 the way the government funds apprenticeships in England has changed. 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.

We can help you decide how to work our your levy commitment and the best ways to utilise it.

We have people you can talk to who can work with you to find the best levy, so contact us for a free consultation by emailing employers@howcollege.ac.uk or telephoning 01905 743435.

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 this is 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. This funding will be in your hands, to go to the training provider you choose (we hope that is us!)

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).

Further information regarding the apprenticeship levy can be found at the GOV.UK website.