Apprenticeships Reforms and Levy in Hertfordshire

Levy Introduction

The new Apprenticeship Levy was announced by the government in 2015 and introduced in 2017. It  affected all public and private sector employers with a payroll of £3m or more. The government’s aim is to see three million apprentices by 2020. Employers will pay for the required training with special digital vouchers and Skillmakers can put you in touch with providers who can help you get your business ‘Levy ready’.

Apprenticeship Levy: At a glance

The Apprenticeship Levy was introduced in April 2017 and is designed to support the creation and funding of three million Apprenticeship starts by 2020.  

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  • The first levy payments were due in April 2017 and are paid through Pay As You Earn (PAYE)
  • The levy applies to any company where the salary bill is £3m or more regardless of whether they already employ Apprentices or not 
  • The rate for the levy is currently set at 0.5% of an employer’s pay bill 
  • Employers receive an allowance of £15,000  
  • Employers with a pay bill less than £3m do not pay anything into the Apprenticeship Funding Pot and continue to employ Apprentices in the current way  
  • The levy payment is ‘spent’ in the form of an electronic voucher that can be used to purchase Apprenticeship training from the chosen college or training provider 
  • Companies who have a salary budget over £3m pay the levy, regardless of whether they use the ‘training vouchers’ or not

What is the Apprenticeship Levy?

Together Training provides training solutions for levy paying businesses.