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).