The Apprenticeship Levy is a government initiative announced in the 2015 Summer Budget by the Government, the aim of which is to increase apprenticeships and raise £3bn annually to supplement Government apprenticeship funding.
What is the Apprenticeship Levy?
The Apprenticeship Levy is a payment that will be collected from large employers with a payroll bill in excess of £3 million a year in both the public and the private sectors. The payment is paid to the HMRC via PAYE returns.
The purpose of the levy is to encourage employers to invest in apprenticeship programmes and to raise additional funds to improve the quality and quantity of apprenticeships.
Small employers with less than 50 staff (Non levy payers) will have 100% of Apprenticeship funding paid for 16-18 year olds, 19-24 SEND or care leavers.
Other apprentices will be funded at 90% of the total cost. Based on current funding rules, the levy can only be used for approved apprenticeship training.
Why is the Levy being introduced?
The Apprenticeship Levy has been introduced to address the lack of employer demand for Apprenticeships. The Government has set a target to increase the amount of UK Apprentices to 3 million by 2020. The aim of the Levy is to empower employers to get what they need from the training market by improving the skills of their workforce, which in turn will help organisations to succeed and grow.
What can the Digital funds and government funding be used for?
- Apprenticeship training and assessment
- With an approved training provider and assessment organisation
- Up to the funding band maximum for that Apprenticeship
What can't the Digital funds and government funding be used for?
- Travel and subsistence
- Managerial costs
- Work placement programmes
Contact the Apprenticeship Team
For further information on the Apprenticeship Levy and individual tailored support, get in touch with our Apprenticeship Team today on 01530 519 001