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APPRENTICESHIPS

The Apprenticeship Levy will be a levy on UK employers to fund new apprenticeships. In England, control of apprenticeship funding is put in the hands of employers through the Digital Apprenticeship Service.

 

The levy will be charged at a rate of 0.5% of an employer’s paybill. Each employer will receive an allowance of £15,000 to offset against their levy payment. It will be introduced in April 2017.

 

All UK employers who have a total employee pay bill above £3m a year will pay the levy. This includes public and private sector, charities and educational providers such as academy groups and universities.  

 

The levy rate was set at 0.5% of your pay bill in the November 2015 Comprehensive Spending Review.

For the Apprentice it’s a great way to work and study, whilst their employer knows that their staff are getting quality assured training.

 

Job applicants who have trained through an apprenticeship scheme are more employable than people with other qualifications, even degrees, a government survey has found.

 

 

Employability research from 500 companies, by ICM Research, revealed that employers rate apprentice’s skills and experience above other career paths.

What types of programmes can be funded by the Apprenticeship levy?

What types of programmes can be funded by the Apprenticeship levy?


A range of Apprenticeship training programmes can be funded. They must be provided to an approved Apprenticeship standard. Read the government’s full list of Apprenticeship standards.

How much of the Apprenticeship Levy will you pay?

Here are some examples of how much employers may pay for the levy;

 

Employer A: 1,000 employees, each with a gross salary of £20,000

 

Annual pay bill: 1,000 x £20,000 = £20,000,000
Levy applied: 0.5% x £20,000,000 = £100,000
After allowance applied: £100,000-£15,000 means £85,000 levy payment

 

Employer B: 500 employees, each with a gross salary of £20,000

 

Annual pay bill: 500 x £20,000 = £10,000,000
Levy applied: 0.5% x £10,000,000 = £50,000
After allowance applied: £50,000 – £15,000 means £35,000 levy payment

 

Employer C: 100 employees, each with a gross salary of £20,000

 

Annual pay bill: 100 x £20,000 = £2,000,000
Levy applied: 0.5% x £2,000,000 = £10,000
After allowance applied: £10,000 – £15,000 means £0 levy payment

Will smaller businesses be able to access the digital apprenticeship service?

Will smaller businesses be able to access the digital apprenticeship service?

Yes. Whether you pay the levy or not, the arrival of the digital apprenticeship service is relevant as it will be available to help all businesses do the following:

  • select an apprenticeship framework or standard

  • choose the training provider or providers you want to deliver training

  • choose an assessment organisation

  • post apprenticeship vacancies

  • and by 2020, all employers will be able to use the digital apprenticeship service to pay for the training and assessment for apprenticeships.

To ensure the quality of Apprenticeships the Government has introduced legislation that affects both training providers and employers.

 

For our part we have to structure our Apprenticeships to include at least 280 hours of learning each year, (through a mixture of learning on the job, with their trainer and individual study time).

 

From April 6th 2012 employers are required to include Apprenticeship details in contracts of employment; if you’d like any help with that get in touch, we have a template you can use as an add to your existing contracts.

NEW APPRENTICESHIP LAWS