The Apprenticship Levy

The apprenticeship levy is a government initiative to fund apprenticeships. The government is committed to three million new apprenticeship starts in England by 2020.

Key aspects of the apprenticeship levy

  • Any businesses with a paybill in excess of £3 million per annum must pay the apprenticeship levy. The levy will be charged at a rate of 0.5% of an employer’s paybill.
  • The apprenticeship levy is payable regardless of whether you employ apprentices or not.
  • The apprenticeship levy will be collected by HMRC, directly via the PAYE process, alongside Income Tax and National Insurance.
  • Any business paying the apprenticeship levy will receive £15,000 allowance per tax year to offset against the levy payment
  • The Government will provide 10% monthly top ups to apprenticeship levy payers who employ apprentices
  • Apprenticeship Levy funding can only be spent on apprenticeship training and end point assessment with approved providers
  • No organisation is exempt, the private and public sectors are subject to the apprenticeship levy.
  • For apprenticeship levy payers, funds will be accessed through a new Digital Apprenticeship Service and you will need to create an account
  • Non-apprenticeship levy paying employers will co-invest with the government to pay for apprenticeships (frameworks and standards) The co-investment rate has changed for new apprenticeships starting as of April 2019, with employers contributing 5% and government will contributing 95%. The same model will apply to levy-payers who have exhausted their funds.

Please click the image below to download our in-depth pdf guide to the apprenticeship levy


Further information on apprenticeship funding and how it will work is available on GOV.UK.  Please click here to follow the link.