The Apprenticeship Levy
Announced in 2015, the Apprenticeship Levy aims to fund three million apprenticeships in the UK by 2020. It affects all organisations above a certain size, committing them to either taking on apprentices or paying a percentage fee of their PAYE wage bill. This website is designed to tell employers all they need to know about the Apprenticeship Levy, how to meet its requirements and how to get started.
Does the Apprenticeship Levy affect my organisation?
If your payroll comes to over £3m a year, the answer is yes.
What will it cost?
The basic charge is 0.5% of your PAYE bill. However, smaller companies can claim £15,000 training allowance to offset this. And if your training costs are more than this, the government have indicated that more funds will be available.
What is the aim of it?
While some are calling it a tax on business, the main aim is to persuade you to take on more apprentices. They can be from outside your organisation, but you can also retrain current employees to take the next step on their career ladder, or to change direction.
When does it come into force?
To allow businesses and other organisations to plan ahead, the Levy only takes effect in April 2017.
An opportunity, or just another expense?
There’s a real shortage of skilled staff in many areas in the UK. Research also shows that the better you train your employees the longer they tend to stay, and the more positive the effect they have on your bottom line, as well as your organisation as a whole.
Does it affect Public Sector organisations as well as businesses?
Yes – for details see the Public Sector
What should my organisation be doing?
The short answer is that you should be planning now to make the most of what could be a real opportunity. If you get up and running now, before the Levy starts in April 2017, you could benefit from the current funding available and pay almost nothing for the training of your apprentices.
How is the government going to help me take on apprentices?
Employers will be issued with a digital voucher to enable them to purchase training from a recognised provider. Apprenticeships are also being categorised in different ways, with many more types of apprenticeship at different levels.
What’s the role of the London Apprenticeship Company in all this?
This website has been created by the London Apprenticeship Company (LAC), which works with employers and apprentices across London and the South-East to match candidates to opportunities. A government-recognised provider, to date we’ve helped well over 500 employers and placed over 5,000 apprentices. We provide advice and training via our main London Apprenticeships website, and we also maintain the London Apprenticeships Jobs Board and the Apprentices For Hire site, which maintains a pool of hundreds of apprentice candidates. We also have a sister organisation, the College of Apprenticeship Training, offering new standards in staff training and skills.
Get started now
The implications for any employer with a payroll of over £3m are huge. Take a look at some suggested actions & advice and how we can help – including free health check and apprentice planning. You can also check out some video case studies as well as our news and special events, and sign up for updates as more details of the Apprenticeship Levy are released, and in the run-up to and post its launch in April 2017.
To request any of our services– many of which are free, simply call us on 0203 651 4747 or complete the contact form