Apprenticeship Funding: How It Will Work

Apprenticeship Funding: How It Will Work

In spring 2017 the way the government funds apprenticeships in England is changing. Some employers will be required to contribute to a new apprenticeship levy, and there will be changes to the funding for apprenticeship training for all employers.

The apprenticeship levy is being introduced on 6 April 2017. The levy requires all employers operating in the UK, with a pay bill over £3 million each year, to invest in apprenticeships.

This guidance provides information on how the apprenticeship levy will work. It also explains the principles that apprenticeship funding will operate on from 1 May 2017, whether you pay the levy or not. 

https://www.gov.uk/government/publications/apprenticeship-levy-how-it-will-work/apprenticeship-levy-how-it-will-work

You can find out more about the benefits apprenticeships can bring to your organisation and about the ways apprenticeships are being reformed, in the Governments vision for apprenticeships. The reforms include giving employers the opportunity to add to the new apprenticeship standards already available by developing standards that meet their precise needs.

Who this guidance applies to

This guidance is for all employers operating in the UK, whether you pay the apprenticeship levy or not.

If you’re an employer with operations in Scotland, Wales or Northern Ireland, you may also want to contact your apprenticeship authority:

• Scotland
• Wales
• Northern Ireland

The levy will not affect the way you fund training for apprentices who started an apprenticeship programme before 1 May 2017. You’ll need to carry on funding training for these apprentices under the terms and conditions that were in place at the time the apprenticeship started.

For more details, see the policy paper on apprenticeship funding in England from May 2017.