Apprenticeship Levy: five key points

7th Mar 2017

The apprenticeship levy will come into effect on 6 April 2017, with the aim of funding three million apprenticeships by 2020, and help to address skills shortages. Here, we clarify what it is and how it will affect you and your business.

1. Employers with a payroll bill of £3 million or over will have to pay towards the levy. The rate will be 0.5% of their annual bill, with employers receiving a £15,000 allowance deducted from their contributions.

2. Each employer will hold a digital account which they can use to pay apprenticeship training providers. The fund cannot be used for other means.

3. Unused funds will expire if they are not used within two years of submission.

4. Employers will choose from list of training providers suitable for their requirements, with these providers receiving cash incentives to promote future courses.

5. In order to encourage collaborative working relationships, levy contributors will be able to transfer up to 10% of funds to the account of another employer, from 2018.

If your organisation qualifies for the apprenticeship levy, guidance can be found at

Post a comment

To be able to contribute to this discussion you need to be a registered SOE website user. If you already have a username and password, log in using the forum fields below.

Remember me

If your browser doesn't automatically prompt you to save your login details, read how to change your browser's settings.

Forgotten password?

Members without username and password

If you're an SOE Member and don't yet have a username and password, you can register for access.


If you're not a member, then find out how SOE Membership can benefit your career.

Visit the Membership pages to find out more and how to join.