The apprenticeship levy will be paid by employers in any sector with a pay bill of more than £3 million per year. Those employers will be able to use their apprenticeship levy funds to access degree apprenticeships from higher education providers.
Non-levy paying employers will receive up to 90% funding towards the costs of apprenticeships. Higher and degree apprenticeships can be offered to anyone over the age of 19. There is no upper age limit and no cost to the apprentice.
The training costs for employers may vary for individuals depending on their age. Apprenticeships can be open to current members of staff to support career development.
Levy Key Facts
- The rate has been set at 0.5% of an employer’s UK payroll total and will be collected via PAYE
- Levy payments will be ring fenced and held in a digital account for organisations to reclaim
- The government will top up your account by 10%
- Levy funds must be used within 24 months on a rolling basis or you’ll lose it
- Levy funding can only be spent on apprenticeship training and assessment
- Create a talent pipeline where they can embed values and behaviours from the very start of someone’s career
- Give existing staff members the opportunity to develop their skills and gain qualifications
- Improve opportunities for young people
- Attract and retain people from diverse backgrounds.