The Government has pledged to create three million apprenticeships by 2020 with a special focus on higher and degree level apprenticeships offering education right up to Masters degree level.
Levy paying organisations
From April 2017, large employers have been paying a levy of 0.5% of their payroll bill to create a £3 billion funding pot to use exclusively for apprenticeships.
Employers can draw down the value of their contribution – plus a 10% top-up donation from the Government - in vouchers which can be used to pay for apprenticeships through their Digital Account.
Use them or lose them! Levy vouchers expire if they are not spent within 2 years. A firm paying a £100k levy would recoup the full value with just four degree apprenticeships.
Vouchers can be spent on training, assessment and certification. Employers themselves pay the apprentice’s wages.
From April 1 2019, smaller employers may be able to access funding at a 95% funded rate.
Employers who have spent all of their levy but who want to offer more apprenticeships will receive Government support at the same generous rate as small employers.
Additional incentive payments may also be available depending on eligibility.