Are you an employer interested in finding out more about the Apprenticeship Levy and what it means for your organisation? Read our handy FAQ to find out more.

What is the Apprenticeship Levy?

The Apprenticeship Levy is part of the government’s plan to increase the quantity and quality of Apprenticeships. The Levy aims to fund three million new Apprenticeships in England by 2020.

Do all organisations need to pay the Levy?

All UK employers who have a total employee pay bill above £3m a year will pay the Levy. This includes public and private sector, charities and educational providers such as academy groups and universities. The Levy rate was set at 0.5% of your pay bill in the November 2015 Comprehensive Spending Review.

How does the government collect the Levy?

Payments are collected monthly by HM Revenue and Customs (HMRC) through Pay as You Earn (PAYE), alongside tax and National Insurance.

What types of programmes can be funded by the Levy?

A range of apprenticeship training programmes can be funded. They must be provided to an approved apprenticeship standard.

What can apprenticeship funding be spent on?

Funds can only be used towards the costs of apprenticeship training. They cannot be used on other associated costs such as apprentice wages, travel and subsidiary costs or the costs of setting up an apprenticeship programme.

What are apprenticeships standards?

The standard describes the skills, knowledge and behaviours an individual needs and must demonstrate in order effectively and consistently work to national standards and to be fully competent in an occupation. The learning for the apprentice must last at least 12 continuous months, specific details are set out in the assessment plan per standard. The learning must demonstrate 20% off-the-job training which must take place during the apprentice’s working hours and they will also be required to demonstrate maths and English Skills.

Can I direct my Levy funds to someone else?

In the first year of the Levy, you will only be able to pay for apprenticeship training of your own employees. However, the government understands some employers will want to support their supply chain or other employers in their sector or community by transferring funds.

What is an End Point Assessment (EPA)?

The End Point Assessment (EPA) is the final test of an apprenticeship programme designed to measure the competence of the apprentice against the apprenticeship standard. The employer and training provider will have completed the training for the apprentice according to the requirements in the standard and there will have been regular reviews along the way.

To find out more about the Apprenticeship Levy and to discover how City Gateway could help you, why not get in touch? We would love to hear from you:

0203 727 6331