What is the ‘Levy’?
To fund the increase in apprenticeships, the Government introduced an apprenticeship levy in April 2017. The levy amounts to a 0.5% tax on the wage bill for employers whose salary costs are £3 million or more each year. It is expected to generate approximately £3 billion a year and levied funds can only be spent on an approved apprenticeship.
Employers paying the levy are able to access their funding through the digital apprenticeship service to pay the provider of their choice. Funds will expire 24 months after they enter your apprenticeship service account unless you spend them on apprenticeship training with a training provider, such as the University of Northampton.
Employers that don’t pay the Levy
Small businesses with a pay bill of less than £3 million will have 95% of the training fees for apprentices paid on their behalf by government funding. The government will ask you to make a 5% contribution to the cost of this training and government will pay the rest, up to the maximum amount of government funding available for that apprenticeship. As both you and the government make a payment, this is called ‘co-investment’.
The University of Northampton takes gold...
We have also been given the Gold Award in the Government's Teaching Excellence Framework (TEF) – the highest rating possible which places us among the elite of the UK's higher education institutions.