What is the Apprenticeship Levy?
The Apprenticeship Levy was initiated by the UK government in April 2017, for all employers paying a wage bill of more than £3 million per year. Employers that meet this criterion are now required to pay 0.5% of their payroll each month as a levy tax. This levy can then be reinvested back into their workforce in the form of Apprenticeship training.
Since starting the entire apprenticeship landscape has changed with the development of new workforce programmes called apprenticeship standards, which have been created by employer groups known as Trailblazers.
The new standards are being developed from level 2 up to Level 7, which is the equivalent to a Masters degree. Many of them also include valuable professional qualifications like CIPS and AAT. The assessment methods are also more robust, harder to achieve and graded up to distinction level.
What does the Apprenticeship Levy mean for SMEs?
Employers with wage bills under £3 million will not be subject to the Apprenticeship Levy. However, smaller organisations need to make a 5% contribution towards the cost of Apprenticeship training.
This is an exciting time for Apprenticeships and these radical changes will help to significantly raise the profile of Apprenticeships, develop the UK workforce, increase productivity and drive growth of the UK economy.
The Apprentice Academy have a dedicated team focused on helping organisations understand and make the most of the funding available and the new programmes. Our success rates are amongst the highest in the country, with many of our learners achieving distinction grades. For more information please get in touch.