Apprenticeships Levy Funding

Since April 6th 2017 Apprenticeship funding changed with the inclusion or the Employer Apprenticeship Levy and to allow for non-levy paying employers to access Government funding for Apprenticeship provision.

Any company with an annual wage bill in excess of £3 million has a levy applied and recovered by HMRC of 0.5% of their total wage bill, the levy applies to all wages that are subject to Class 1 Secondary National Insurance Contributions, including items such as bonuses and commissions. The Government will however pay the first £15,000 of any levy payment due. In addition to this £15,000 contribution the Government also provides a ‘Top Up’ of 10% of the total your company pays in levy contributions.

For more information about the Apprenticeship Levy download our Apprenticeship Levy Employer Guide or access guidance from the Government on

Companies with an annual wage bill of below £3 million do not have to pay the new levy. Those who employ more than 50 members of staff do however have to make a contribution of 5% towards the cost of delivering the Apprenticeship programme. This is reduced from the original co-investment of 10% to support employers in taking up the Apprenticeship offers.

Employers with less that 49 members of staff will not make any contribution to Apprenticeship training.

The 5% contribution can be collected flexibly to suit your needs and the payments will be subject to VAT. The cost of each different Apprenticeship has been capped by the Government and we will be able to advise you of actual costs prior to any training being delivered, you can find the value of the capped bands at the following link.

We work closely with employers in order to understand their needs and objectives and work collaboratively with them to produce an Organisational Needs Analysis and a bespoke Apprenticeship Programme to address their needs and provide them with a measurable return on investment and their employees with improved knowledge, skills and behaviours.

Want further information on how Construction Skills People can help?

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Phone: 01246 589 477