Apprenticeships are an invaluable way of bringing new and updated skills into your workplace but the rules about their funding have changed, with the introduction of an Apprenticeship Levy from April 2017.
Now all public and private organisations operating in the UK with an annual wage bill of more than £3 million will be required to contribute to the new levy, as the government targets the creation of three million new apprenticeships by 2020.
If your payroll is over £3m, the levy will be charged at 0.5% of your total payroll bill. However, the Government will provide a ‘levy allowance’ of £15,000 to offset this, plus a 10% monthly top-up which means every £1 of levy collected will increase to £1.10 in value for an employer operating in England.
If your annual pay bill is less than £3m you will not be required to make any apprenticeship levy contributions. However, organisations operating in England will need to pay 10 per cent of the apprenticeship training and assessment costs - the Government contributes the remaining 90%.
If you already have apprenticeship programmes, you need to calculate the amount of apprenticeship levy you are liable to pay and see how this compares to the budget you have allocated for apprenticeships. You may need to expand the amount of apprenticeship programmes you run in your organisation.
If you do not currently have any apprenticeships programmes but you do have an annual wage bill of £3m or more, you will be affected by the levy. As you are paying anyway, this is an opportunity to assess how apprenticeships can drive your organisation forward, and a skills analysis can help with this. We can do this for you, free of charge.
We can help you maximise your degree apprenticeships so you are not just spending the levy but implementing apprenticeships meaningfully. There are many ways you can upskill and reskill your existing workforce and we can help you identify those opportunities through our end-to-end managed service that operates throughout the process.
In addition, the Skills Funding Agency has created an online levy calculator to help employers work out what their levy contribution will be in the first year. Visit the Skills Funding Agency Estimator.
Apprenticeships Partner – the City of Liverpool College
Our partner The City of Liverpool College is a leading provider of apprenticeship training in the region. They will help you source work-ready apprentices who have drive and an appetite to learn on the job, removing the stress of recruitment from your organisation.
The College’s dedicated recruitment team employs a wealth of industry knowledge and experience to help you advertise for candidates - sifting, pre-screening and arranging interviews for you. Always cost-effective, results driven and forward thinking, they work across a broad range of sectors to provide tailored employer-led schemes.
The City of Liverpool College will hand-pick the most promising apprentices for you - highly-motivated people who are eager to learn more. Apprentices inject energy, passion and fresh-thinking into a business. They provide a launch pad for careers and give young people their first taste of work. They can make a real difference.
in>Professional Development provide accredited leadership and management courses, transforming the learning of executives across every sector.
From your first contact with us, we will help you tailor the precise training you or your company needs.
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