From April 2017, the Government has introduced a new levy on employers with a wage bill of £3 million or more. As part of this, employers will contribute 0.5% of their wage bill into a digital account reserved for funding skills development, including degree apprenticeships. The aim is to boost productivity, address the skills gap and encourage knowledge development to meet the unique needs of businesses across the UK.

Employers required to pay the levy

Hiring an apprentice or developing an existing employee through a degree apprenticeship is a cost-effective way to recoup the levy and invest in the future of your business. If you wish to spend more on apprenticeship training than you have in your digital account, you will be able to co-invest in the same way that organisations below the threshold can.

Employers below the levy threshold

If your business is below the levy threshold, you can benefit from co-investment. You will need to make a 10% contribution to the training costs, and the Government will pay the remaining 90%, up to the maximum amount of funding available for that apprenticeship. 

Apprenticeship Grants

Smaller employers may also receive a £1,500 apprenticeship grant if they have less than 50 employees or their apprentice is aged 16 to 24. Employers can claim grant support for up to 5 apprentices.

Further Information

Find the latest information on apprenticeship funding on the website.

To learn more about how to make the most of the Apprenticeship Levy, please get in touch with us at