Apprenticeship Levy

There are two ways in which apprenticeships are funded:

• Apprenticeship Levy – For businesses that have a salary / pay bill over £3m
• Co-Funded Apprenticeships – For employers with a salary / pay bill under £3m

Employers with a pay bill of less than £3 million a year will not need to pay the levy. At least 95% of non-levy paying employers’ apprenticeship training and end point assessment costs in England will be paid for by the government. The government will ask these employers to make a 5% contribution to the cost, paid directly to the provider, and the government covers the rest. This cost will be spread over the lifetime of the apprenticeship. The government is offering additional support to organisations with fewer than 50 employees by paying 100% of training and assessment costs for their apprentices aged 16-18.