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The levy will be introduced in April 2017 at a rate of 0.5 per cent of an employer’s paybill, and will deliver three million apprenticeships starting by 2020.

The Apprenticeship Levy

In the last parliament, 2.4 million apprenticeships were delivered by the government.

Employers will receive an allowance of £15,000 to offset against their levy payment, which will only be paid on paybills in excess of £3m.

The levy will be paid through Pay As You Earn. Fewer than two per cent of UK employers will pay the levy.

The government said the levy would raise £3bn by 2019-20, and spending on apprenticeships would be protected within England's departmental spending budgets.

The government is creating an online portal known as the Digital Apprenticeship Service, which all organisations will have access to, regardless of whether they have contributed to the levy.

Employers can use the portal to source apprenticeships, find accredited training providers and pay for training with their digital vouchers. It is believed that those organisations committed to training will be able to get back more than they put in by training sufficient numbers of apprentices.

Want to find out more?

Visit our apprenticeship page. You can contact us on call0845 470 1000 or email and we will be in touch.

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