The way the government funds apprenticeships has now changed. From today, if you’re an employer with a pay bill of over £3 million each year, you must now contribute to the new Apprenticeship Levy. Funds to pay for apprenticeship training will be accessed through a new digital account system.
Speaking on the Levy, Chief Executive at Skills for Justice, John Rogers, said: “Larger organisations are going to have to pay the Levy whether they intend on offering apprenticeships or not, so it makes sense for them to seriously consider putting a scheme in place if they don’t have one already.
“Employers in England can use money from the digital account system to pay for training and assessment for apprentices. Investing in the future of their organisations will help build the next generation of the justice and community workforce.”
Paying the Apprenticeship Levy: the key points
- You are now required to report and pay your levy to HMRC through the PAYE process.
- The levy will not affect the way you fund training for apprentices who started an apprenticeship programme before 1 May 2017.
- All employers will receive an allowance of £15,000 to offset against the levy, which means the levy will only be payable on a pay bill in excess of £3 million in each year.
- Employers with a pay bill of less than £3 million won’t pay anything but will still be able to draw down funds to deliver apprenticeship training.
- If you’re an employer with operations in Scotland, Wales or Northern Ireland, you may also want to contact your apprenticeship authority.
- Read ‘Apprenticeship funding from May 2017’ for full details of what is changing.
Skills for Justice are constantly working to improve our apprenticeship offer and this will continue to happen after the Apprenticeship Levy changes come into play. We want to help employers benefit in full from the new system changes and use the apprenticeship process to best effect in developing their workforce.
Are you struggling with getting to grips with the Apprenticeship Levy or looking for additional support? Here’s some useful resources from Skills for Justice to help make things clearer:
- The Apprenticeship Levy – What you need to do
- Infographic Apprenticeship Levy – use it or lose it
- Employer Survey – Apprenticeship levy results
- Skills for Justice Apprenticeship Services