In 2017 the UK Government introduced an employer levy to encourage all employers to support apprenticeship training. This levy requires employers to contribute 0.5% of their annual PAYE bill. The government allocated a £15,000 allowance to each employer to offset this cost. Therefore only employers with an annual PAYE bill in excess of £3m are required to make a financial payment. This payment is made directly to HMRC through the company PAYE returns. These funds can then be accessed by the employer one month after being paid, through their Digital Apprenticeship System account.
These funds can only be used to fund apprenticeship training and assessment.
Currently only England has confirmed policy for the distribution of levy funds collected. For information regarding the devolved nations, please click on the title “Scotland, Wales and Northern Ireland” in the additional information and FAQ’s section below.
There are currently 3 funding streams available for employers.
- Levy funded apprenticeships
- Co-investment funded apprenticeships
- Fully Government funded apprenticeships
For a more detailed explanation of each of these funding streams, please click the relevant heading below.