Apprenticeship Levy Myth-buster

The Apprenticeship Levy can come across as confusing and a little daunting if you don’t fully understand the details surrounding it. To help you gain a better understanding, we have put together an Apprenticeship Levy Myth-buster.

All businesses must pay the apprenticeship levy.

No, only employers that pay more than £3m in wages are liable to pay the apprenticeship levy. Levy-paying employers contribute 0.5pc of their payroll into a fund each month, which can be re-invested in apprenticeship training for their business. And for every £1 contributed, the government adds 10p. And also, if you’re an employer with an annual pay bill under £3m then you don’t pay the levy – but the government will still fund 90pc towards the cost of your apprenticeship training.

Aren’t Apprenticeships for 16 -24 year olds? I don’t want young workers, I need experience.

Not at all, anyone can start an apprenticeship at any point in their life, whatever their age, background or career level. With levy funds, employers can train and upskill their existing workforce as well as hiring new recruits. Also you can use the levy funds to train existing employees who hold prior qualifications so long as the apprenticeship they are taking is relevant to their role and the most appropriate way of progressing or developing their career.

Apprenticeships are no use to my organisation as we do not employ manual workers – we are a tech company.

This might once have been the case, however, apprenticeships are now available in over 1,500 occupations across 170 industries, ranging from nuclear, banking to cyber security.

I have to spend all my apprentice levy funds myself.

No not necessarily. You can transfer up to 10% to your supply chain.

As an employer it seems to me that the Levy will mean I have less control my training requirements.

The levy makes it easier for employers to choose apprenticeship training that best suits their needs. Funding follows employer choice and this is different from previous models and forces training providers to become more responsive to employer needs. Employers’ levy contributions are paid into an apprenticeship service account which allows them to choose and pay for apprenticeship training more easily. If an employer is in a group of companies paying the levy together, the group can collect their funds into a single account.

To find out more about the Apprenticeship Levy, click here.