Four facts about the apprenticeship levy
Only businesses with an annual wage bill of £3 million pay into the levy
It is widely believed that all businesses pay into the apprenticeship levy, but this isn’t the case. Only employers that have an annual wage bill of more than £3 million pay into the apprenticeship levy. Organisations that meet this criteria must pay 0.5% of their wage bill into the levy, and this can only be retrieved by investing in apprenticeships.
For every £1 that a levy-paying organisation invests in an apprentice, the government adds 10p. If you don’t pay into the levy, the government will fund 90% of apprenticeship training costs!
Even business that don’t hire an apprentices are paying into the levy
Some businesses believe that you only pay into the levy if you hire an apprentice. But that’s not true. ALL BUSINESSES with a wage bill over £3 million pay into the levy.
So, by choosing not to train an apprentice, many businesses missing put on a share of the pot they’ve contributed to.
The levy can be used to train all employees - regardless of age
The levy doesn’t have to be used to train school leavers or new recruits. It can go towards the training of existing staff – regardless of age.
The levy can be used to provide members of staff with industry-specific or transferable skills, like team leading. Apprenticeships also cover a range of levels, including degree level. This is an effective way of developing existing staff and strengthening your work force.
The levy gives businesses more control over their apprenticeship programme
Another misconception is that businesses have less control over apprenticeships that are funded by the levy. That’s not true. In fact, the levy has actually made it easier for employers to choose bespoke packages that meet the needs of their business.
If you’re confused about the levy, or not sure how it can be used to benefit your business, get in touch with our Training Solutions team.
You can email apprenticeships@weston.ac.uk or call 01934 411 594.
Alternatively, you can find out more on the team’s webpage.
