Levy funding explained


How does the apprenticeship levy work in England?

Whether you pay the new apprenticeship levy or not, you can benefit from offering an apprenticeship programme that supports the development of accounting and finance skills in your business.

  • Since April 2017, employers with a payroll of GBP3m have to pay an apprenticeship levy of 0.5% of their wage bill.
  • New apprenticeship standards allow you to use funding from the levy to offer an approved apprenticeship scheme.
  • Levy payers can claim back up to GBP9,000 per Level 4 apprentice, or GBP21,000 per Level 7 apprentice, from their contribution to cover the cost of training, so apprenticeships can be extremely cost-effective
  • Non-levy payers can claim up to GBP8,100 per Level 4 apprentice, or GBP18,900 per Level 7 apprentice, to cover the cost of training, enabling you to offer structured and accredited training that might otherwise be beyond your resources.
  • 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 the transfer of levy funds from one employer 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, 24KB)

To see how the levy funding works in England, download our flow diagram (PDF, 21 KB)