Levy funding explained

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How does the apprenticeship levy work in England?

Changes in government policy means there is a large amount of funding available to cover apprenticeship training:

  • Since April 2017, employers with a payroll of GBP3m have to pay an apprenticeship levy of 0.5% of their wage bill.
  • Revised apprenticeship standards means you can use funding from the apprenticeship levy to offer an approved apprenticeship scheme in your business.
  • Levy payers can claim back GBP8,000 per Accounting Technician Level 4 apprentice, or GBP21,000 per Professional Accountant Level 7 apprentice,
  • Non-levy payers can claim up to GBP7,600 per Level 4 apprentice, or GBP19,500 per Level 7 apprentice, to cover the cost of training
  • An additional payment of GBP1,000 is available for all employers who take on a 16-18 year-old apprentice
  • Employers with fewer than 50 employees can access full funding to train an apprentice aged 16-18 years
  • Employers can now connect with each other using the government’s digital account service, allowing one levy-paying employer to transfer up to 25% of their levy funds to a smaller employer, so funding 100% of apprenticeship training for that small employer.

An example of the levy funding

To see a comparative example of levy and non-paying employer in England, download our infographic (PDF, 29KB)

To see how the levy funding works in England, download our flow diagram (PDF, 27 KB).