Information around the apprenticeship levy, and how it impacts the degree apprenticeships we provide.
On 6th April 2017, the UK Government introduced the Apprenticeship Levy, a 0.5% tax on all organisations with a PAYE bill over £3m per annum. Organisations affected by the tax make monthly payments into a digital account where their money sits as credits. These credits expire after 24 months but are earmarked to pay for training courses for new and existing members of staff. For smaller employers who do not attract the Apprenticeship Levy, the cost of course fees is shared between government (95%) and employers (5%).
Eligible training courses are labelled “Apprenticeship Standards.” These documents outline occupational specific knowledge, skills and behaviours akin to a job description. Over 850 Apprenticeship Standards have been published ranging from level 2 (GCSE equivalent) right the way up to Level 7 (Masters).
As a Russell Group Higher Education Provider, Queen Mary University of London we deliver Degree Apprenticeships at Levels 6 & 7 (Undergraduate and Postgraduate Level). Over 200 Degree Apprenticeships have been approved and bring delivered. With new standards constantly in development.
Employers can find out more about Trailblazer Groups, Standards in delivery on The Institute for Apprenticeships & Technical Education page along with a list of all approved apprenticeship standards.
From May 2018, employers who pay the apprenticeship levy can choose to transfer up to 25% of their levy funds each year to other businesses. These funds will be used to pay for the training and assessment cost of the apprenticeships agreed with the receiving employer and will be paid monthly for the duration of the apprenticeship.
Only levy-paying employers can make a transfer. Any employer can receive and use transferred funds, but they have to be registered on the apprenticeship service.
Find out more about transferring apprenticeship service funds. If you are a Levy paying organisation interested in supporting SME's employ apprentices please contact us: firstname.lastname@example.org.