Apprenticeship Funding

What is the Apprenticeship Levy?

The Apprenticeship Levy is a UK tax on employers which can be used to fund apprenticeship training. In the current tax year, it is payable by all employers with an annual pay bill of more than £3 million at a rate of 0.5% of their total pay bill.

What can the Apprenticeship Levy be used for?

Employers can spend apprenticeship levy funding on apprenticeship training under an apprenticeship standard. The funding can be spent only with an approved training provider or an approved assessment organisation
Employers cannot use the apprenticeship levy to fund other costs of apprenticeships or other training costs. Government guidance states that the levy cannot be spent on:

  • wages
  • statutory licences to practice
  • travel and subsidiary costs
  • managerial costs
  • traineeships
  • work placement programmes
  • the cost of setting up an apprenticeship programme

Transfer of Levy

From 1 April 2019, the maximum amount that employers can transfer increases to 25% of their levy credit. The receiving employer must use the funds for training and assessment for apprenticeship standards (not frameworks). The transferring employer must agree to the individual apprenticeships to be funded.

Use it or Lose it!

Any funds that remain unused are channeled back to a central pot used to fund apprenticeships provided by other employers including your direct competitors. in effect if you don't use your levy money your are funding your competitors!

What can I do about it?

At Oxford Applied Training, we have developed tremendous expertise in advising levy employers on the best and most efficient way to spend their apprenticeship levy to benefit their business.
Why not find out more and book a free no-obligation consultation with one of our expert consultants.
You can also find out more here about the apprenticeship programmes we offer, our Digital First approach and our quality standards and commitment to apprentices and employers.