What is the levy?

Introduced in April 2017, the apprenticeship levy is a government initiative to fund apprenticeships. You’ll only pay the levy if you have a total wage bill over £3 million. The government committed to 3 million apprenticeship starts in England by 2020. So, the levy was created to fund this. Their goal? To encourage more people to hire apprentices – and help reduce skills gaps in the UK.

Incentive payments

All employers in England will receive a £1,000 incentive payment for each 16- to 18-year-old apprentice. It will be paid to you by your training provider in two equal instalments – at 3 and 12 months. It also applies to 19- to 24-year-old apprentices who have been in care, or who have a Local Authority Education, Health or Care plan.

*For apprentices aged 19 and over that started on programme after 1st April 2019 the co-investment rate is 5%. Any programme starts prior to 30th March 2019 the co-investment rate is 10% (if an apprentice is on programme now and enrolled in March 2019 but switches employer and remains on the programme, then a pro rata payment based on 10% co-investment is applied; for new starts or starts since April 2019 it will be 5%).

In addition, the government has laid out more funding for apprenticeships until January 2021. Read about the latest government apprenticeship incentives here.

Bonus Incentive Scheme

In July 2020, during the summer statement the government announced a new apprenticeship bonus scheme for employers who hire a new apprentice as a solution to bridging their tech skills gaps. This support for employers has now been extended until 31st March 2021.

Incentives for the following groups of people include:

How can QA help with the apprenticeship levy?

We’ll work alongside you – understanding what the levy means for you and how to use it best. How? We use the following three steps:

Get in touch

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