Degree apprenticeship funding for levy payers
What is the Apprenticeship Levy?
As of April 2017, all UK employers with a payroll of more than £3 million per year will pay a levy of 0.5 percent of their pay bill to support apprenticeships. This will be collected by HMRC through PAYE, with the first £15,000 offset.
Employers will be able to ‘spend’ their levy to pay for training their apprentices via a digital account. The Government is currently developing the Apprenticeship Service (AS), which will be a digital portal allowing employers, training providers and aspiring apprentices to manage their apprenticeships.
How do I calculate the Apprenticeship Levy payment for my organisation?
You can use the SFA levy calculation online tool for employers to estimate your levy contribution, begin to plan your training requirements, and estimate your financial spending.
What is the Apprenticeship Service (AS)?
The Apprenticeship Service is a digital system which will allow businesses to:
- select an apprenticeship Standard
- choose a training provider
- choose an organisation that will assess the apprentices
- post-apprenticeship vacancies
- set the price you’ve agreed with your training provider
- pay for apprenticeship training and assessment.
Further information about the Apprenticeship Levy and funding opportunities
Further information about the Apprenticeship Levy and funding can be found via the following resources:
- Gov.uk website – current information about apprenticeship funding.
- 'Apprenticeship funding from August 2018' government policy paper – produced by the Skills and Funding Agency (SFA), outlining how apprenticeships will be funded in England from August 2018.