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Over £3 Million Annual Wage Bill

What is the Apprenticeship Levy?
In 2017 the government changed the way Apprenticeships are funded. Employers are categorised into Levy and non-Levy payers depending on the size of their annual wage bill.

Key Facts

  • Employers with an annual wage bill of over £3 million will contribute to the Apprenticeship levy
  • Employers with an annual wage bill of less than £3 million will not contribute to the Apprenticeship Levy
  • 5% of the annual wage bill will be paid into the Digital Apprenticeship Service (DAS) monthly
  • The vast majority of employers will not contribute to the Apprenticeship Levy
  • Apprenticeship starting after May 1st 2017 are enrolled on the new funding arrangements
  • All employers will receive a 10% top up into their DAS account.
  • The full cost of the Apprenticeship course will be deducted from the DAS account

Employers with 49 employees or less will contribute:

16 - 18 Year Olds
19 - 24 Year Olds (If have EHC Plan or Care Leaver)
All Other Applicants

Employer Contribution

100%

100%

100%

Government Contribution

0%

0%

0%

Additional Funding Available

£1000 employer incentive £2000 additional government incentive for starts between 1st August and 31st January

£1000 employer incentive £2000 additional government incentive for starts between 1st August and 31st January

£1000 employer incentive £2000 additional government incentive for starts between 1st August and 31st January

In addition, if an Apprentice needs to study English and maths the government will pay 100% of this.

Government Announcement: New Employer Incentive

  • Applies to Apprentices that are new to the business only – i.e. not existing or recent employees.
  • Paid out to all employers regardless of annual wage bill.
  • Only applies to new starts between 1 August 2020 and 31 January 2021.
  • Your business could be entitled to £2,000 for each new Apprentice under the age of 25 or £1,500 for each new Apprentice aged 25+.
  • New Apprenticeship incentive is in addition to the existing £1,000 payment the government provides for new 16-18-year-old Apprentices and those aged under 25 with an Education, Health and Care Plan.
  • Employers can apply for funding via the Apprenticeship Service.

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