What is the Apprenticeship Levy?


The levy is paid into monthly by large employers with a pay bill of over £3 million (they pay 0.5% of their total annual pay bill). It can then be used to pay for the training costs associated with hiring an apprentice. Although, funds that have been paid in will disappear after 24 months.


Can employers who don’t pay into the levy access these funds?


Yes! The levy is there to fund apprenticeship training for all employers. Smaller employers, those with a total annual pay bill of less than £3million, pay a 5% contribution to the cost of the training of their apprentice and the Government pays the rest.


Although, where an apprentice is aged between 16-18, or between 19-24 and has previously been in care or has a Local Authority Education, Health and Care plan, the 5% contribution is waived.



How does an employer access the levy?


All employers will need to have registered for a Digital Apprenticeship Service Account. This Government portal will allow employers to connect with a training provider such as Mitre Group to advertise an apprenticeship position, reserve funding for training their apprentice, and arrange a levy transfer (if applicable). 


You can register for your account here with step-by-step support available here.


What is a levy transfer?


Levy paying employers can transfer up to 25% of their unused funds to another employer through their Apprenticeship Service Account. If the amount transferred covers the full cost of the apprentice’s training, then the receiving employer will not have to pay the 5% contribution.


You can discover more about levy transfers here.