The apprenticeship levy
As of 6 April 2017, the introduction of the UK Government’s apprenticeship levy will mean that any organisations operating in the UK with an annual pay bill of more than £3m will be required to invest in apprenticeships.
The levy will be charged at a rate of 0.5% of your organisation’s annual pay bill. However, the UK Government will provide a ‘levy allowance’ of £15,000 to offset against this, as well as a 10% monthly top-up to the funds employers have for spending on apprenticeship training and assessments in England.
Although the apprenticeship levy will apply to employers across the UK, apprenticeships are a devolved policy. This means that authorities in each of the UK nations manage their own apprenticeship programmes, including how funding is spent on apprenticeship training. More information, including links to the Welsh, Scottish and Northern Irish apprenticeship systems, can be found on the UK Government apprenticeship funding website.
Three benefits to acting now:
- Leading the way in shaping L&D strategy, you can explore ways to maximise the financial opportunity the levy presents before it is introduced
- Beginning to drive high-level skills capability now, you can strengthen business resilience in a challenging economy to give you a competitive edge
- Using this time to pilot a smaller cohort of apprentices, you can put new processes in place ready for the levy
Learn even more about the levy and funding in our Apprenticeship levy explained blog post.
And discover how our UK Government-approved degree and higher apprenticeship programmes can be used to develop your workforce.