Apprenticeship Levy – Frequently Asked Questions For Employers
Driven by their productivity agenda, the government is committed to achieving three million apprenticeship starts by summer 2020.
There are certain changes which will effect employers.
The government has introduced an Apprenticeship Levy from 1st May 2017. It falls into two categories.
- Employers with a UK pay bill of over £3m – referred to as levy payers.
- Employers with a UK pay bill of less than £3m – referred to as non-levy payers
Employers with a pay bill of more than £3m from both the private and public sectors will be required to pay 0.5% of that into a levy.
The levy is the government’s logical solution to funding the increase in numbers of apprenticeships and putting control of funding in the hands of employers. If you are not eligible for the levy payments directly through your pay bill, you will still receive funding for your apprentices.
The side tabs provide some frequently asked questions that we have tried to simplify to ensure that employers are able to understand what the changes mean to them.
This is by no means an exhaustive list and for comprehensive information you should consult the government website, but you should be assured that here at ProCo NW we are available to answer any questions you have regarding apprenticeships or training.