Apprenticeship Levy


The government is committed to increasing the quantity and quality of apprenticeships and has set a target of recruiting 3 million new start apprentices by 2020. The introduction of the apprenticeship levy in April 2017, is designed to support the achievement of this ambitious aim and to put employers at the centre of the apprenticeship system. For more information about the levy see our Apprenticeship Levy infographic.

Since April 2017 apprenticeships changed as new standards and qualifications have been introduced. During this big time of change we want our employers to feel confident with the new systems that are in place and ensure that they understand the way in which apprenticeships are going to be funded moving forward. This guide will help you to understand the new changes.

The new standards and qualifications being introduced give employers more choice in how they develop individuals within their organisation. The current Apprenticeship Frameworks will slowly change over to the new standards which have been designed and developed by employers and providers which means they will be more specific to the job role and in turn a more beneficial qualification.

The new standards include an end point assessment (EPA). EPA's will differ depending on what standard is being undertaken. This will be carried out by an external organisation that has been selected by the employer.

Apprenticeships have been split into 30 categories each with a different funding band which ranges from £1,500 to £27,000. This figure relates to how much funding the training provider can draw down for the programme.

Please click below to be directed to further information depending on the size of your organisation.

Levy Paying Employer

(£3m+ wage bill)

Non-Levy paying Employer

(Under £3m wage bill)

What is the Apprenticeship Levy?

The apprenticeship levy is a government initiative in which all UK employers with an annual pay bill over £3 million have to pay. It is intended to cover the training and assessment costs of apprenticeship provision.

The levy is set at 0.5% of an employer’s payroll, with a £15,000 allowance to offset the overall cost. See examples below:

Example one:

Employer of 250 employees, each with a gross salary of £25k


250 X £25,000 = £6,250,000


0.5% X £6,250,000 = £31,250


£31,250 - £15,000 = £16,250 annual levy payment

Example two:

Employer of 100 employees, each with a gross salary of £15k


100 X £15,000 = £1,500,000


0.5% X £1,500,000 = £7,500


£7,500 - £15,000 = £0 annual levy payment

You will report and pay your apprenticeship levy through the PAYE process. Click here for GOV.UK guidance on how to pay the levy.

Your contributions will be made on a monthly basis via an Apprenticeship Service Account. Your contributions will be topped up by a further 10% each month by government. You will have up to 24 months to use each month’s contribution to pay towards the costs of training and assessment of apprenticeship provision.

Apprenticeship provision can be used in the traditional format of bringing new, young employees into your business or you can use it to enhance and improve the knowledge and skills of your existing workforce. To find out more about the Apprenticeship programmes GET can offer click here.