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Key points you need to know about the Apprenticeship Levy. Are you prepared?

As part of Apprenticeship Week we have focused on the up and coming Apprenticeship Levy.

Apprenticeships have been seen as one to the key programmes to assist with skill shortages and supporting businesses with the recruitment and retention of staff. The Government are keen to encourage employers to invest in apprenticeships and in 2015 they announced that there will be an Apprenticeship levy to be introduced. What does this mean for your business? The CIPD have published a guide for employers on how the apprenticeship levy will work.

Please see below a summary of key points for you to consider;
• Effective from 6 April 2017
• The levy will require employers with a UK paybill of more than £3m a year to pay 0.5% of their paybill to fund apprenticeship costs.
• Up to employers to notify HMRC each month – payment will be taken in real time.
• Apprenticeships are a devolved policy, which means that authorities in each of the UK nations manage their own apprenticeship.
• Although the levy is calculated on UK paybill, employers can only spend their English portion on English apprenticeship training.
• Employees can be apprentices at any age.
• Employers will receive a £15,000 fixed annual allowance (not a cash payment) to offset against the levy payment.
• Employers who are not liable for levy payments will also experience changes in apprenticeship funding, and will be required to co-invest. The Government will contribute 90% of the cost of training with employers paying the remaining 10%.

When recruiting apprentices it is important to consider your own business strategy. Are you clear about how apprenticeships are aligned with that strategy?

Liaise and meet with apprenticeship providers. It is important for you to choose one that knows and understands what the business is about and the knowledge and skills that are needed.

For more support on what the Apprenticeship Levy means for you and recruiting Apprentices please contact one of our HR Specialists on 0161 478 3800 or email [email protected]


Key points you need to know about the Apprenticeship Levy. Are you prepared?

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