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Levy

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LEVY

Taking effect as of May 2017, the UK Government has introduced apprenticeship reforms designed to boost the productivity of the UK’s economy and increase the skill level of our workforce through training and development programmes. These changes are part of the government’s wider education reforms and long term agenda aimed at creating interchangeable training and education pathways that sit alongside each other.

In order to fund the apprenticeship scheme, an Apprenticeship Levy will be introduced in which qualifying companies are required to pay 0.5% of their annual wage bill into an online account called the Digital Apprenticeship Service (DAS). All funds accumulated by Levy paying companies into their DAS 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 invest in training for their current workforce or recruit new staff members via an apprenticeship scheme in to a variety of job roles. 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, or train existing staff, government contributions towards the total cost of the course fees ranging from 90% to 100% are available, subject to eligibility criteria.


At Apprenticeship Connect we provide a seamless, start-to-finish recruitment service, through to the delivery of on-the-job training and certification.

For further information on how you can benefit from the Apprenticeship Levy and how this could impact your business, or if you’d like to recruit an apprentice, get in touch.

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