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What is an Apprenticeship Levy?

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The Apprenticeship Levy is a UK government initiative aimed at encouraging employers to invest in apprenticeship programmes by providing funding.

It was firstly introduced in 2018, meaning that apprenticeships are either fully or partly funded by the government depending on certain requirements and conditions.


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  • Companies with an annual wage bill exceeding £3 million pay 0.5% of their total wage bill into the Apprenticeship Levy. This amount is deposited into a digital account and can be claimed back to fund new apprenticeships within the firm. These funds expire after 24 months if not utilised.

  • Employers subject to the levy make monthly payments into a digital account created by the government. This account is used to fund the costs of apprenticeship training.

  • Employers can access the funds in their digital account to cover the expenses of approved apprenticeship training. These training programs can be conducted internally or by external training providers.


Benefits for Employers:

1. Access to Tailored Training:

   Employers can use the funds from the Apprenticeship Levy to design and implement training programs that meet the specific needs of their industry and organisation.

2. Creating a Pipeline of Talent:

   Apprenticeship programs provide a direct pipeline for employers to recruit and develop talent within their organisation. This can lead to a more loyal and skilled workforce.

3. Demonstrating Corporate Responsibility:

   Investing in apprenticeships not only benefits individual businesses but also contributes to the overall economic well-being. Employers can showcase their commitment to corporate social responsibility by participating in apprenticeship initiatives.


Key Objectives

1. Promoting Skill Development:

   The Apprenticeship Levy aims to encourage employers to invest in the development of a skilled workforce. By earmarking funds specifically for apprenticeships, companies are motivated to engage in training programs that enhance the skills of their employees.

2. Closing the Skills Gap:

   Many industries face a shortage of skilled workers, and the levy serves as a mechanism to address this gap. Apprenticeship programs provide individuals with practical, on-the-job training, aligning their skills with industry needs.

3. Boosting Productivity and Innovation:

   Apprenticeships contribute to increased productivity and innovation within businesses. Employees who undergo apprenticeship training often bring fresh perspectives and up-to-date skills to the workplace.


The Apprenticeship Levy represents a proactive approach to addressing the skills gap and promoting economic growth through targeted investments in workforce development. By encouraging employers to actively participate in apprenticeship programs, governments aim to create a more skilled, adaptable, and competitive workforce, ultimately contributing to the long-term success of businesses and economies alike.

For more tailored advice or to discuss how GLP Training can assist you in navigating apprenticeship funding, please reach out to our team!

We're dedicated to assisting you in maximising these opportunities to enhance your company and promote the usefulness of apprenticeships to our world!


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