The government Apprenticeship Levy scheme was introduced on the 6th April 2017. From this point on, all employers with an annual wage bill of £3 million or more will contribute 0.5% of this for the training of staff via apprenticeships.
Any unused funds will expire 24 months after they enter an employer’s account. For example, funds entering your account in September 2019 will expire in September 2021. For full details on the levy and how to use it, please click here.
Non-levy paying employers will share the cost of training and assessing their apprentices with the government – this is called ‘co-investment’ which the Oxford College of Apprenticeships are able to support.
From May 2018, employers can pay 5% towards to the cost of apprenticeship training and the government will pay the rest (95%), up to the funding band maximum. For example, an apprenticeship with a funding band of £9,000 will mean that the employer needs to pay £450 in total. Funds will be paid monthly, making it manageable for smaller businesses to still get the most out of the apprenticeship scheme.
If you are from a levy-paying organisation or an SME and are interested in finding out more about how the levy works please do Contact Us on 01865 515 255, or via email at firstname.lastname@example.org.