Apprenticeship Levy – How will it work?

Author // Liz Kirman Categories // Business Development

Apprenticeship Levy – How will it work?

The Apprenticeship Levy will start on 1 April and will have a major impact on the way Apprenticeships are funded. No longer will you get your Apprenticeships fully funded, from 1 May every business will have to pay something towards their Apprenticeship training.

The scary thing is that a recent survey by City and Guilds shows that 33% or employers who would have to pay the Levy, don’t even know about it! This seems crazy as the Levy is set at 0.1% of the payroll of businesses with an annual wage bill of £3 million plus as determined by HMRC. If you are paying the Levy you will need to register for your digital account where the government will deposit £15,000. The account will be used to manage and pay for the training.

If you are an SME and don’t pay the Levy you will now have to pay something towards your Apprenticeship training – this is set at 10% of the cost of the training. Depending on the course and which band it is in, you could pay between £300 - £2,700 towards your Apprenticeship. The good news is that if you take on your apprentice by 30 April 2017, they will still be funded under the old system and the training will be fully funded.

A thing to be aware of if you are a paying the Levy – which is about 2% of companies in England -  is that this money can only be spent on Apprenticeships.

The new era of Apprenticeship funding is about to begin. Whether you are paying the Levy or not, it’s a good time to think about your training and development needs and the role Apprenticeships could play in this.

If you would like to find out more about the Levy or Apprenticeships, please contact with us This email address is being protected from spambots. You need JavaScript enabled to view it. or visit the government website.

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