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The Apprenticeship Levy is an opportunity for employers to improve the skills of staff at all levels, increase productivity and boost growth.
What is the Apprenticeship Levy?
Introduced in April 2017, the Apprenticeship Levy is a payroll tax on employers. It is an additional cost to your organisation - you pay a 0.5% Levy if your annual pay bill is over £3 million per annum. Government makes this money available to you via a digital account to invest in apprenticeship training and assessment costs. The Levy funds are available to grow and upskill existing employees as well as new recruits.
As an incentive to invest in apprenticeship training, government provides a 10% top-up on your payment each month, meaning you can get more out than you put in. Plus, if you spend more than your available Levy funds, the government will pay 90% of the additional cost, within the funding bands that apply to each type of apprenticeship.
There are also important policy changes that make it easier to apply the Levy funds to your whole workforce. The key policy changes include:
- Apprentices can be of any age and there are no restrictions
- Apprenticeships now go all the way up to Level 7 qualifications (equivalent to a masters degree) and can include recognised degree and masters programmes and professional qualifications
Helping you take advantage of the Apprenticeship Levy
We will help you respond to the Levy with tailored information and developing a strategy so you can devise an appropriate response.
Our Apprenticeship Levy Readiness Service helps you understand your position, the financial implications and possible opportunities of the Levy. We share our insights and expertise across:
- Stakeholder workshops: A facilitated session aligning key stakeholders within your organisation. The session is split between sharing our insights of the reforms and exploring opportunities for you
- Talent mapping workshops: A facilitated session provides structure around your current and future talent needs to reach a place where the Levy is a strategic part of your talent plans
- Financial modelling tool: This tool models the upfront and rolling cost of the Levy. You can view initial financial impact, forecasting of future costs and layer over expected utilisation of Levy funds
- Compliance: We provide guidance on paying the correct amount with uncovering complexities around group structures and common ownership
- Workforce cost management: Reviewing your payroll and employment tax practices will help you to identify potential savings
We’ve supported more than 1,500 employers with compliance, understanding the impact and making the most of possible opportunities.
Apprenticeship training programmes
Our range of training programmes will improve the skills and knowledge of employees at all levels in your organisation. We’ve designed them specifically to increase productivity and growth, and achieve sustainable, long-term results.
- The Cranfield Executive MBA
We’ve formed a partnership with Cranfield University to bring world class education to management teams of dynamic organisations. You can pay towards the costs of the Executive MBA programme through the Apprenticeship Levy, enhancing your management team’s skills.
- The Babington Accountancy Professional Level 7 Programme
Together with specialist training provider, Babington, we have created a new approach to professional development that leads to CIMA or ACCA qualification, and develops highly valuable leadership skills. The programme is linked to the Apprenticeship Levy so you can benefit from little or no additional cost to your organisation.
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