What is the Apprenticeship Levy and how does it fund apprenticeship training?
The Apprenticeship Levy is a levy on UK employers to fund new apprenticeships. This is paid by employers with annual pay bills in excess of £3 million. Depending on if you pay the levy or not, this is how apprenticeship training is funded –
Wage bill over £3 million?
- You will pay a levy of 0.5% on all wage over £3 million
- The money will be placed into a digital account
- 100% of your course fees are paid from your digital account
Wage bill under £3 million with more than 50 employees?
- You don’t pay the apprenticeship levy
- 95% of apprenticeship course fees are paid by the government, you pay the remaining 5%
Wage bill under £3 million with less than 50 employees?
- You don’t pay the apprenticeship levy
- 100% of apprenticeship course fees are paid by the government for apprentices aged 16-18
- 95% of apprenticeship course fees are paid by the government, you pay the remaining 5% for apprentices aged 18+