The Apprenticeship levy is a new scheme that changes the way the government funds apprenticeships in England.
It came into effect on 1st of April 2017. Each employer will receive an allowance of £15,000 to offset against their levy payment.
Your school will have to pay 0.5% of your wage bill into your levy pot to invest in apprenticeship training if:
- Your annual school wage bill exceeds £3m per annum
- Your school is part of a Multi-Academy Trust or Authority and collectively the annual pay bill exceeds £3m per annum
Apprenticeship Levy payments are set to start in May 2017 and it is the responsibility of the employer to declare your levy to HMRC. As well as the amount paid into the levy pot by employers, the Government will top it up by an extra 10%. This means that for every £1 paid in, you will have £1.10 available to spend on workforce development. However, you will lose your levy pot if it’s not spent within 18 months.
Government approved programmes delivered by government endorsed training providers.
New apprenticeship training programmes have been designed by employers in collaboration with awarding organisations.
The benefit of such partnerships allows employers to identify the skills, knowledge and behaviours required from their workforce. The second key development is that all providers must be approved and feature on the Register of Apprenticeship Training Providers (RoATP).
What if your school do not pay the Apprenticeship levy?
If your school wage bill is less than £3m and you would like to train an apprentice, you will only be required to ‘co-invest’ 10% of the training and assessment costs.
You will benefit from Government funding which will pay the remaining 90% of costs.
How should you spend your Apprenticeship levy pot?
It is important to note that you do not need to take on new members of staff to access training through an apprenticeship pathway. Using levy vouchers to upskill or retrain existing staff could be a viable option for your school and will benefit your staff retention. (subject to eligibility)