Offering the new Higher and Degree Apprenticeship scheme is a great way for you to support your staff and their professional development, as well as attracting new recruits. Our work-based programme enables you to develop your employees within specific job roles. Their learning will fit around work commitments with flexible approaches such as day or block release, distance or blended learning.
What is ‘The levy’
To fund the increase in apprenticeships, the Government is introducing an apprenticeship levy from April 2017. The levy will amount to a 0.5 per cent tax on the wage bill for employers whose salary costs are £3 million or more each year. It is expected to generate approximately £3 billion a year and levied funds can only be spent on an approved apprenticeship. The Government will apply a 10% top-up to the funds you have for spending on apprenticeship training in England. They will apply the top-up monthly at the same time the funds enter your apprenticeship service account. That means for every £1 that enters your account to spend in England on apprenticeship training, you get £1.10.
Employers paying the levy will be able to access their funding through the digital apprenticeship service to pay the provider of their choice. Funds will expire 24 months after they enter your apprenticeship service account unless you spend them on apprenticeship training with a training provider, such as the University of Northampton.
Employers that don’t pay the levy
Small businesses with a pay bill of less than £3 million will have 90 per cent of the training fees for apprentices paid on their behalf by government funding. The government will ask you to make a 10% contribution to the cost of this training and government will pay the rest, up to the maximum amount of government funding available for that apprenticeship. As both you and the government make a payment, this is called ‘co-investment’.