The levy was introduced in 2017 to encourage organisations to invest in training apprentices to help fill the UK skills gap.

If you're an employer with a pay bill over £3 million each year, you must pay the apprenticeship levy. For more information visit the GOV.UK website.

If you're paying less than £3 million on UK salaries, you won't pay the levy. To offer apprenticeships in your organisation, you'll contribute 10% of the cost of training and assessment and the government will fund the rest.

Steps to get started

  1. Find out if you are going to be a levy paying employer.
  2. Find out who will be managing your levy.
  3. Make sure you know what your levy bill is, have you included the government’s 10% top up?
  4. Identify your company’s skills gaps and requirements.
  5. Know what apprenticeship standards are available and the cost of each apprenticeship.
  6. Understand how much of the levy you will be using with existing staff and with new staff.
  7. Know how to locate the training providers and assessment organisations to use.
  8. Understand how the co-investment works if you exceed your levy.

Apprentice criteria:

  • Be over 16.
  • Have the right to work in England.
  • Spend at least 50% of their working hours in England over the duration of their apprenticeship.
  • Not be enrolled in another apprenticeship at the same time.
  • Not be asked to contribute financially to the cost of the learning.
  • Not use a student loan to pay for their apprenticeship.
  • Be able to complete the apprenticeship. (If the individual will be unable to complete the apprenticeship in the time specified, they cannot be funded).
  • Be either: - a citizen of a country within the European Economic Area (EEA) (including other countries determined within the EEA or those with bilateral agreements), or have the Right of Abode in the UK, and have been ordinarily resident in the EEA (including other countries determined within the EEA or those with bilateral agreements), for at least the previous three years on the first day of learning, or; - a non-EEA citizen with permission from the UK government to live in the UK, (not for educational purposes) and have been ordinarily resident in the UK for at least the previous three years before the start of learning.