Apprenticeship Levy Information



In spring 2017 the way the government funds apprenticeships in England changed. 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.



Fees – Companies with an annual payroll greater than £3M


From May 2017, the government is introducing a new funding methodology to contribute towards the costs of apprentice training. Employers with an annual payroll for UK employees greater than 3 million pounds per annum will be required to pay the Apprentice Levy. This is charged at 0.5% of PAYE above £3,000,000. The Levy is collected by HMRC irrespective of the employer’s intention to employ and train apprentices.

The Levy paid by an employer is available to that employer to pay approved training and assessment providers to deliver provision to their apprentices, against the requirements defined in Apprenticeship Frameworks and Standards.



Fees – Companies with an annual payroll less than £3M


Where an employer is not required to pay the Levy or where they have insufficient funds available from Levy payments to meet their apprentice training needs, the government will contribute towards apprentice training costs through Co-Investment up to the maximum rate (funding cap) allowed for each Framework or Standard. The government will contribute 90% when the employer contributes 10%. If the Company employs 50 people or under, the government will not require the 10% contribution.


Each Framework and Standard is allocated to a funding band (funding cap) that defines the maximum Levy funding or government Co-Investment funding that can be used for each apprentice. Charges agreed above the funding cap are paid in full by the employer.


The government recognises that employing younger apprentices (16-18 at apprenticeship start) can incur additional costs. To help employers address this an additional £1,000 will be paid to the employer via the training provider. This payment is made in two equal amounts at 3 and 12 months after the apprenticeship start date.



Apprentices aged 16-18 years


The £1,000 young apprentice incentive payment (as described above) will be made to you, the employer, after the qualifying period. Government enhancement payments for young apprentices are also made directly to training providers.


A full payment schedule will be provided prior to commencement of the apprenticeship.



Apprentices aged 19 and above


A full payment schedule will be provided prior to commencement of the apprenticeship.





In line with our current terms, additional travel/expense charges may be made if required to visit apprentices outside Sussex, Surrey and Inner London.

Candidate registration and certification fees will be charged at cost based on published awarding body rates.


VAT will be added at the current rate to all fees paid directly to SIGTA by the employer.

Details provided are subject to change to reflect latest versions of qualifications and national funding policy/ rate changes.



Click here for further information from the GOV UK website.