The Apprenticeship Levy
What is the Levy?
• The Levy will be used to fund new apprenticeships starts from April 2017.
• The Levy applies to all UK private and Public sector employers, including those operating under other Levies.
• UK employers with a pay bill over £3million per year is liable to pay the Levy. The Levy is 0.5% of the pay bill.
• An allowance of £15,000 will offset against levy liability. The levy allowance is not a cash payment and cannot be used to purchase apprenticeship training.
• Employers who will pay the levy will be able to get more out of the levy than what they put in, through a 10% top up to their digital accounts.
Main Levy points proposed
• New system from 1st May 2017
• Employer consultation closes 5th Sept 2016
• No minimum contract value all employer contract direct
• STEM subject 40% uplift
• £1000 employer incentive (16-18 yr. olds)
• Graduates can do lower level apprenticeship
How Apprenticeships will work for Levy paying employers
• Employers will continue to negotiate prices for training directly through training providers
• 100% of the price for training, assessments and certification are funded from the Levy
• 10% top up payments will be applied monthly to the employers digital account
• Levy payments and top ups expire at the end of 18 months unless they are spent on training
• The employers will manage their apprenticeship programme including funding and payments through the digital apprenticeship service from April 2017
• Providers are paid monthly through employers digital account after the levy is introduced.
How Apprenticeships will work for non-levy paying employers
• They will agree a price with their chosen providers for training and assessment
• Will still have access to government funding to support apprenticeships. They will be expected to make a financial contribution to the cost of training their apprentices.
• The employer level of contribution has not been set.
• Pay their contribution towards the costs of the training and assessment direct to their training provider.
• Have access to the digital apprenticeship service enabling them to search for a standard or framework, find a training provider and post apprenticeship vacancies.
WATA will be running further Levy Seminars to register your interest complete the form below.