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Apprenticeship Levy - Information

As market leaders for Apprenticeships we are here to help you understand the Levy and support you to identify and deliver the Apprenticeships you need.

What is the Levy?

From Spring 2017 the way the Government funds apprenticeships in England is changing. Large employers with an annual payroll >£3m will be required to contribute to a new apprenticeship levy. This will be collected by HMRC from April 2017 and calculated at 0.5% of payroll. In return, these Levy-paying employers will have a Digital Account from which to pay for Apprenticeship training in their own organisation. For employers who do not pay the Levy, you will need to pay 10% to your chosen provider, who will then access the remaining 90% from the main Levy pot.

Where do Providers fit into this?
If you will be paying the Levy, you will be able to use an Online Portal to identify approved providers who can deliver your apprenticeships for you. You will be able to search by location and by sector to identify and approach providers who best suit you. You can speak to multiple providers until you identify the one(s) you want to work with. Providers can only work with Levy payers if they are on the Governments new Register of Apprenticeship Training Providers (RoATP) and they have to work within published funding bands when they quote their training costs to you. Once you have identified your chosen provider(s), they will draw their funding down from your Digital Account. The value of this is 10% more than the amount they pay into the Levy. If your training costs go beyond the value within your Account, you must then follow the process for non-Levy payers i.e. pay 10% costs to access 90% funding.

If you are non-paying into the Levy, you can approach your chosen providers to identify the provider you want to work with. These providers need to have successfully attained a contract with the SFA for apprenticeship provision for non-Levy payers. Once you have agreed your programme including costs and the incentives you may be entitled to, you will need to pay the provider(s) 10% for them to access the remaining 90%. This is accesses from the main Levy pot (created by the Levy-paying employers).

What can the funding be used for?
This funding can be used to train new Apprentices or existing staff who do an apprenticeship training programme as part of their workforce development e.g. management apprenticeships. Apprenticeships now range from Level 2 (GCSE equivalent) to Level 5/6 (Degree Apprenticeships).

The Government will be offering incentives where employers run apprenticeships for 16-18 years olds, 19-24 year olds with Education and Health Care Plans, plus those from deprived areas.

What do I do now?
You need to identify whether you will be paying into the Levy or not, and therefore which system you will fall into. You should also start to consider what Apprenticeships may add value to your organisation – including new employees and/or training for existing staff. You also need to start identifying and speaking with providers who can support you with the training you need.

How can Mitre help?
We are here to help you through all elements of the planning, identification, development and implementation of the Levy. We can:

¥ Provide guidance & tailored advice for your company
¥ Support you through preparation and implementation of the Levy
¥ Identify and Design programmes that work for you and maximises the value of funding you have access to
¥ Manage Levy/Apprenticeship training payments – whether you are a Levy-payer or a non-Levy payer
¥ Identify effective partnership working and how this fits into a holistic workforce training programme
¥ Deliver the following Apprenticeships to new or existing staff, accessing funding from your Levy Account or from the main Levy pot, whichever is appropriate:

¥ Business Administration

¥ Customer Service

¥ Coach Education

¥ Sports Development

¥ Youth Work

¥ Hospitality

¥ Manufacturing Operations

¥ Stewarding

¥ Management inc Senior Management

¥ Leadership

¥ Sales & Marketing

¥ Improving Business Performance

¥ Teaching and Learning

For more information and updates or to arrange a meeting to discuss the Levy within your organisation please contact us at or call 01773 525406

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