Apprenticeship Levy FAQ

Read our most popular FAQs answered by the experts at the Apprenticeship College

What is the Apprenticeship Levy ?

The apprenticeship levy is a policy implemented in 2015 to encourage companies to invest in apprenticeships to support the development of their employees. The levy applies to employers with an annual pay bill of over £3 million..

What will it cost ?

The basic charge is 0.5% of your PAYE bill. However, employers will not pay the first £15k of the Levy.

What is Government Co-funding ?

Government co-funding is centralised budget for apprenticeship training. If you are not a levied employer the co-funding from Government will pay 95% of apprenticeship training costs for you.

Co-funding is also available to employers who are levied but who want to train more apprentices that can be funded by their own levied funds.

Does the Apprenticeship Levy affect my organisation?

If your payroll comes to over £3m a year, the answer is yes, regardless of what kind of employer you are.

Are any employers exempt ?


Can I use the apprenticeship levy to fund my Learning and Development programme ?

Yes, provided that your training provider is approved and registered on the new Register of Apprenticeship Training Providers (RoATP) and works with you to develop an L&D programme based on apprenticeships standards.

Is the Public Sector exempt ?

No – the Apprenticeship Levy applies to all employers.

What is the aim of the Apprenticeship Levy ?

The main aim is to persuade you to take on more apprentices. They can be from new, as junior employees, but you can also retrain current employees to take the next step on their career ladder, or to change direction.

In the end, the Apprenticeship Levy is designed to so that employers are encouraged to up-skill staff and become more productive and competitive.

Do I have to employ new staff to recover the money I've paid into the Levy ?

No. You can use the funds that you have paid into the Apprenticeship Levy to train any of your employees. That includes juniors and new entrants but also team leaders, supervisors and people in managerial posts.

So apprenticeships aren't what they used to be then ?

No. As well as the introduction of the Levy, apprenticeships have been reformed in lots of ways. Anybody can be an apprentice. Apprenticeships include everything from GCSE level courses all the way up to post graduate courses.

Has government stopped paying for apprenticeships ?

No, they will still ‘co-fund’ apprentices and pick up the bill for 95% of training costs if you are either:

a). too small to be levied

b). you’ve spent all of your Levy and want to train more apprentices


How do we get started ?

Get in touch on 020 3651 4747 and we’ll arrange to brief you fully.