The Apprenticeship Levy Information for Employers

What does it mean for your business?


From May 2017 any business with a gross annual payroll in excess of £3m will be required to pay a 0.5 per cent apprenticeship levy. If your business is one of them we can talk you through how to maximise the positives.


From 1 May 2017 all employers, whether they already employ apprentices or not, will be required to pay a new Apprenticeship Levy of 0.5 per cent of their gross annual payroll, which will be taken by HMRC alongside tax and NI. However, the government will also offer all employers a £15,000 allowance to offset against their Levy liability, which effectively means that only employers with a gross annual payroll in excess of £3m – less than 2 per cent of employers nationwide – will be required to pay it.


The aim of the Levy is to increase UK employers’ commitment to, and investment in, Apprenticeships, and the Levy that you pay will be made available to you to fund Apprenticeship training. The government will also add a 10 per cent ‘bonus’, thereby guaranteeing that you’ll have access to more levy funds than you actually put in. Apprenticeships for 16-18 year olds will attract an additional payment to employers of £1000 per apprentice, in recognition of the extra support this age group may need in order to achieve.


If you wish to fund Apprenticeship training in excess of your Levy pot, the government will support this by funding 90 per cent of the cost, up to the upper limit of the relevant funding band. If, for any reason, you decide to access training that exceeds the upper limit of the relevant funding band you may do so – but the government will not fund any part of the excess.
Bath College is the largest provider of apprenticeships in Bath and the surrounding area. We are highly experienced in the delivery of apprenticeships and have been recognised as the Bristol & Bath Apprenticeship Training Provider of the Year for the last 3 years out of 4. If you would like more information about the levy and apprenticeships, please contact apprenticeships@bathcollege.ac.uk


Public Sector Levy

The Apprenticeship Levy will affect the public sector in the same way as the private sector – local councils and other organisations will pay 0.5% of their wages bill into the Apprenticeship Levy just like all other large employers. But the public sector will also be required to meet the legislative requirements contained within the Enterprise Bill. This legislation will stipulate that all public sector organisations will be required to make sure that 2.3% of their workforce are apprentices at any one time. So as well as paying the Levy, local councils, for example, will need an apprenticeship programme that manages and trains circa 100 – 200 people annually.


Digital Apprenticeship Service


There are five main employer-facing services which have been developed to help employers manage apprenticeship recruitment & funding.

1. Estimate apprenticeship funding: employers will be able to calculate how much they will have to spend on apprenticeship training, before the levy is introduced

2. Find apprenticeship training: employers will be able to find the right training provider and apprenticeship type to suit their business

3. Recruit an apprentice: employers will be able to work with their training provider to post an apprenticeship opportunity

4. Manage your apprenticeship funding: employers will be able to register securely to set up an employer account and access their apprenticeship funding

5. Add an apprenticeship: employers will be able to set up their chosen apprenticeship package and authorise payment to their training provider


Changes to Apprenticeship Standards


Due to a major government reform of Apprenticeships, the current system of ‘frameworks’ is being replaced by ‘standards’.
The standards are two-page documents listing the skills, knowledge and behaviours needed for an apprentice to be competent in their role.
These have to be assessed throughout and the result graded at the end of the Apprenticeship by somebody independent.
The standards are currently being phased in with some already approved for delivery.
For more information, please contact apprenticeships@bathcollege.ac.uk

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