Apprenticeship Levy Fund
What is the Apprenticeship Levy Fund?
The Apprenticeship Levy Fund is a government initiative designed to support the growth of apprenticeships across various industries in the United Kingdom.
Introduced in April 2017, the levy aims to create a skilled workforce by encouraging businesses of all sizes to invest in high-quality training programmes.
How does it work?
The Apprenticeship Levy applies to all UK employers with an annual payroll over £3 million. If you're a large business you are required to contribute 0.5% of your total payroll to the levy. The collected funds are then placed into an Apprenticeship Service account, which is used to finance apprenticeship training and assessment.
If you're a small to medium-sized enterprise (SME) that doesn't pay the Apprenticeship Levy you can get help with funding to train apprentices through the Apprenticeship Levy Transfer Fund set up by the West Midlands Combined Authority).
Key features of the Apprenticeship Levy Fund
Financial incentives for employers: By contributing to the levy, you can reclaim funds to invest in apprenticeship programmes.
Co-investment model for non-levy paying employers: If you're payroll is under £3 million you can still benefit from government co-investment. The government will cover 95% of the training costs, while you pay the remaining 5%.
Expiry of funds: Levy contributions are available for 24 months from the date they enter your account. If not used within this period, the funds will expire and be reallocated to support apprenticeships for smaller employers.
Benefits of the Apprenticeship Levy Fund:
Enhanced workforce skills: By investing in apprenticeships, you can cultivate a highly skilled workforce tailored to your specific needs.
Economic growth: A well-trained workforce contributes to increased productivity and economic growth.
Career development: Apprenticeships provide individuals with valuable work experience, training, and a pathway to career advancement.
Support for all employers: Whether you're a large or small business, the Apprenticeship Levy Fund provides financial support to enhance training opportunities.
Learn how your organisation can get involved
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