In a bid to increase apprenticeship funding large employers (i.e. those with an annual payroll of more than £3 million) will be required to pay a 0.5% levy on their total pay bill with effect from 6 April 2017. This figure will be reduced by a ‘levy allowance’ of £15,000 per year, however, meaning that an employer with a total pay bill of £3.5 million would potentially pay a total levy of £7,500, i.e. £17,500 less £10,000.
Large employers will be able to access levied amounts, plus a government top-up of 10% to fund apprenticeships from accredited training providers. Smaller organisations not required to pay the levy will also potentially be eligible to receive funding for accredited apprenticeships by contributing 10% towards the cost of an apprenticeship, with the remaining cost provided by the Government.