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​Training Works is an independent training company, registered with the ESFA, providing high quality vocational training solutions to the Adult & Child Care Sector
​​About the Levy
Frequently Asked Questions

 
Why a Levy?
The Levy is part of the Government’s strategy to raise £3 billion in 2019-20, of which £2.5 billion will be spent on English Apprenticeships. This will mean that the investment in Apprenticeships will double and will also mean that SMEs will be supported to recruit and train apprentices.  

Who will the Levy apply to?
The Levy will be calculated on 0.5% of the payroll bill of all employees across the whole of the UK including Scotland, Wales and NI. However, employers will not pay the first £15k of the Levy. Therefore the payroll bill has to be £3m before an employer starts paying. That does mean that employers with around 150 reasonably paid employees will pay a Levy.

When will employers pay?
The Levy will start to be collected from April 2017. It will be collected on a monthly basis, based on ‘live’ HMRC payroll data. It will include all directly employed employees but not contractors. It will be applied to ‘groups’ of companies but not franchisees. It will be HMRC that determines the rules and does the collection of the Levy.

How will the Levy work?
The employer will pay the tax and their ‘virtual’ account will be credited with that amount. They will then be able to pass their voucher to Training Works to draw that money down for the cost of the apprenticeship training.
The government has said that it will ‘top-up’ the funds by 10%. Therefore if a company pays £30,000 Levy they will have £33,000 in their virtual account to spend on Apprenticeship frameworks.

How much can be drawn down for each apprentice?
Each Apprenticeship programme is allocated to a band of funding. We can advise you on the level of funding for the programme you select. Payments for English and maths and additional learner support will be separate payments made to Training Works where necessary.

How will it work for the other nations?
Because the tax is collected by HMRC they have no way of separating out the payroll costs between the nations. The levy will be collected across the UK and a formula will be used to allocate the monies between the nations. The estimate is that £3bn will be collected across the UK and £2.5bn will apply to England. Employers will be able to spend the Levy for the employees who work in England. The nations will decide how to spend their allocations but we assume it will have to go towards funding apprenticeships. It may be a very different system from England.

Who can be trained under the Apprenticeship System?
Both existing employees and new recruits of any age, geographical location or prior attained qualifications will be eligible for an Apprenticeship. Training Works can help you understand how an Apprenticeship programme can meet your training needs.

Will there be any incentive to recruit 16 – 19 year olds?
There will be an incentive for the employers if they recruit a young person aged 16-19. This will be a minimum of £1000 and there will also be additional funding to pay for their training.

How will the system work for non-Levy payers?
Smaller employers that recruit 16-19 year olds will not have to make any contribution to the Apprentice’s training. Larger employers will contribute 10% of the cost of the Apprenticeship training. The government will contribute the rest of the cost (90%). The payments will be made directly to the training provider.

Which training providers will be able to deliver the training for employers?
In the Levy based system the government is working towards a concept of a ‘registered’ training provider. The government operate a register of providers.
There are likely to be a set of criteria that providers must pass to be considered a registered provider which will include Ofsted grade and track record.

WHAT ABOUT MY EXISTING APPRENTICES?
The Levy will only affect new Apprentices from April 2017. Existing Apprentices will not be affected.



For more information - Contact us
Call us now: 01253 478182 / 07974 072 927
Email us: enquiries@training-works.co.uk

As more information becomes available, we will continue to update you