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Apprenticeship Levy

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APPRENTICESHIP LEVY

Taking effect as of May 2017, the Government has introduced apprenticeship reforms. As a result, an Apprenticeship Levy will be introduced in which qualifying companies are required to pay 0.5% of their annual wage bill into an digital account called the apprenticeship service.

All funds accumulated by levy paying companies into their apprenticeship service account can only be used for apprenticeship training. If a business chooses not to use their levy funds for training, it will be re-distributed to other employers and therefore become redundant at a cost to the business.

Businesses can use these funds to recruit new staff members via an apprenticeship scheme in to a variety of job roles, or invest in training for their current workforce.

However, it is not just levy paying companies that can benefit from the new reforms; a co-investment model is also available. For non-levy-qualifying businesses that wish to hire an apprentice, government contributions towards the total cost of the course fees ranging from 90% to 100% are available, subject to eligibility criteria.

Click here for the latest updates on the levy

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