• Levy Information for Employers

The Facts

  • 0.5% Levy contribution is only paid on gross PAYE bill in excess of £3m
  • Employer allowance of £15,000 per year(= 0.5% £3m)
  • Levy contributions will be collected monthly by HMRC
  • If the available Levy funds are not sufficient to cover the cost of Apprenticeship training, the government will contribute 95% of the balance and employers meet the remaining 5% (April 2019)
  • 5% co-investment contribution for non Levy payers (April 2019)
  • Automatic government 10% top-up paid to the employers account each month
  • Levy contribution that is unused will expire after 24 months
  • Employers are able to transfer unused apprenticeship funds to other employers to a maximum of 10% of annual funds.  From April 2019, this amount will increase to 25%.

For more information visit Gov.co.uk

Incentives in the Levy system

  • Employers employing an Apprentice aged between 16 and 18 at the start of their Apprenticeship, will receive a payment of £1,000
  • Employers recruiting an Apprentice who is aged between 19 and 24 who has an education, health and care plan provided by the local authority or a 19- to 24-year-old who has been in the care of the local authority will also receive a £1,000 incentive payment. In addition 100% of the training and assessment costs will be covered.
  • Employers with fewer than 50 employers will have 100% of the training and assessment costs covered when recruiting an Apprentice who is 16-18 year old.


Levy Paying Employers in Wales
  • Welsh Levy paying employers do not see a direct return for their Levy contribution,  however Apprenticeships are fully funded, regardless of whether the employer is a levy payer or not and there are no employee age restrictions.
  • There is no cap on the amount of Apprenticeship funding an employer based in Wales can access and there are opportunities to take Apprenticeships in Welsh, bi-lingual or English mediums.

Who is eligible for Apprenticeship funding in Wales?
  • 16-19 year olds accessing Apprenticeships (at all levels) irrespective of the length of time the learner has been in their role.
  • Learners aged 20+ accessing Apprenticeships (at all levels) irrespective of the length of time the learner has been in their role – however there is a restriction on number of learners who undertake a Level 2 only Apprenticeship in Business Admin, Hairdressing and Beauty, Customer Service and Retail.

Talk to our Employer Engagement team today to learn more about the levy 0300 30 30 006 Back to apprenticeships



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