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Apprenticeship Levy
Apprenticeship Levy
The government have set a target of 3 million apprenticeship starts in England by 2020. Because of this, the way apprenticeships are funded has changed.
Some employers will be required to contribute to a new apprenticeship levy which can be accessed to fund apprenticeship training from May 2017.
Not sure if you are a levy payer?
Levy Payers
How much will I pay?
Employers with a wage bill of £3 million or more are required to pay into the apprenticeship levy. You will also receive an additional allowance of £15,000.
For example, if you’re an employer with a wage bill of £3,000,000, your levy sum will be £17,500. You’ll receive an allowance of £15,000 so your annual payment will be £2,750.
These funds will be added to your Digital Apprenticeship Service (DAS) account along with a 5% top-up from the government as digital vouchers.
You can create a DAS account here.
As a levy-payer, you can pay for apprenticeship training via your DAS account. Once your digital vouchers have been spent, any additional apprenticeship training will be 95% funded by the government and you will contribute the remaining 5%.
Any un-spent digital vouchers will be lost after 24 months and used to fund apprenticeship training for non-levy paying employers.
You can calculate your annual levy contribution here.
Non-Levy Payers
As a non-levy paying employer, the government will fund 95% of the cost of your apprenticeship training and you will pay the remaining 5%.
If you employ less than 50 members of staff and you recruit an apprentice aged 16-18, your apprenticeship training will be fully funded by the government.
Grant funding may also be available.
Get in touch
If you’re unsure if you are a levy paying employer or would like to discuss how to make the most of your levy contribution, contact a member of the Business Development Unit on business@stockton.ac.uk or 01642 865 577.
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