We can help take away some of the confusion about apprenticeships. From understanding the apprenticeship levy to explaining off the job training. Read more below, or get in touch with our Business Training Solutions Team who can help you every step of the way.

The Apprenticeship Levy

In April 2017, the government launched its Apprenticeship Levy. The Levy is a ‘payroll tax’ designed to support the government’s commitment to deliver 3 million apprenticeships by 2020.

Regardless of the size of your business, Walsall College is perfectly placed to provide you with up-to-date advice on how the Levy impacts your business and if you need to contribute.

Find out which category you fall into and what contribution you might need to make:

Payroll bill Over £3m Below 33m, above 50 employees Below £3m, under 50 employess
Your business Is a Levy payer is 'Co-funded' for Apprenticeships Training Is fully funded for Apprenticeship Training of 16-18 yr olds Or/And 19-24 yr olds care leavers, or 19-24 yr old with an education and healthcare plan is 'Co-funded' for Apprenticeship Training of people 19+
What you pay 0.5% of total payroll bill 5% of the cost of training You do not need to pay for Apprenticeship Training 5% of the cost of training

If your payroll bill exceeds £3m, your business is classed as a Levy payer and you will be required to contribute. The Levy is charged at 0.5% of your total pay bill and is deducted from your PAYE.

The government is providing an Apprenticeship Levy allowance of £15,000 for employers who are not connected to another company or charity. Connected companies or charities will have £15,000 allowance to share between them.

Example: An employer with an annual pay bill of £5 million:

Levy sum: 0.5% x £5,000,000 = £25,000

Allowance: £25,000 – £15,000 = £10,000 annual payment

One of the benefits of the scheme is that it places control of Apprenticeship Funding into the hands of the employer. This allows you to invest in your current apprentices, take on more and upskill existing staff to help secure the future of your organisation.

As long as you are offering recognised Apprenticeship Training, typically bought in from a college or independent training provider, you can take advantage of the allowance.

If you have a payroll bill of less than £3m and over 50 employees, you will be co-funded for Apprenticeship Training. The government will pay 90% of the cost of Apprenticeship Training, whilst you will need to pay the remaining 10% to the training provider. The training provider will then request the remaining 90% from the Ggvernment.

As well as taking on new apprentices, this funding can also be put towards training existing staff, if the Apprenticeship Training is relevant to their job and will assist in their career development.

Non-Levy paying companies with less than 50 employees do not need to make a contribution towards the cost of training and assessment of any apprentices aged 16-18, as the government will pay 100% of the costs. This also applies to apprentices aged 19-24 who have been in care or have a Local Authority Education, Health and Care plan.

For training that applies to anyone that is aged 19 or over, you will be required to pay 10% of the cost of training, whilst the government will pay the remaining 90%.

For more information about the Apprenticeship Levy and how it might affect your business, visit The Apprenticeship Levy and You

Walsall College is perfectly positioned to help you understand how the Apprenticeship Levy affects training funding for new or existing employees. Our expertise and support will guide you effortlessly through the new system, whilst providing high quality accredited apprenticeship training for your employees.

For more information, complete the below form or call Sue Fitzgerald, our dedicated Apprenticeship Levy Manager on 01922 663530.

Apprenticeship service

Previously only open to levy employers, full access to the Apprenticeship Service is now available for all employers.

Through Apprenticeship Service employers will now be able to:

  • Reserve their apprenticeship funding
  • Select their chosen provider from the Register of Apprenticeship Training Providers (RoATP) and apprenticeship standard required
  • Advertise their apprenticeship vacancy
  • Give feedback on the quality of training you receive from the chosen organisation
  • Have greater control and visibility over the amount of funding paid to your training provider on your behalf

Want to find out more about how to set up Apprenticeship Service account call our Business Training Solutions team on 01922 651129 or email businesstrainingsolutions@walsallcollege.ac.uk 

Off the job training explained

Off the job training is vital to the delivery of any apprenticeships provision. It helps to reinforce the practical work-based skills completed on the job by the learner.

Off the job training has always been a part of the apprenticeship provision.  Reforms have led to more specific rules from the Education and Skills Funding Agency (ESFA) around what constitutes off the job training, which must be a minimum of 20%.

Find out more about what counts towards off the job training here


Additional Financial support

There are a number of government grants available to support businesses with training apprentices. At Walsall College, we can help those eligible to access these grants, obtain funding and deliver expert training.

£1,000 incentive payment

Employers are entitled to an additional £1,000 incentive payment for supporting a 16-18 year old partaking in an apprenticeship framework or standard, as well as a 19-24 year old formerly in care or who has an Education and Health Care Plan.
Evidence of an original signed declaration by the apprentice to confirm that they are a care leaver or evidence of an EHC plan is required in order to claim this incentive.
For more information call our Business Training Solutions team on 01922 651129 or email businesstrainingsolutions@walsallcollege.ac.uk


Have any questions?
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  • Littleton Street West
  • Walsall
  • WS2 8ES
  • 01922 657000
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