A guide to the Apprenticeship Levy

By February 28, 2018Apprenticeships, Business

A guide to the Apprenticeship Levy

National Apprenticeship week is fast approaching and so here at Whyy Change our recent Blogs will discuss topics surrounding apprenticeships.


We were shocked to discover that the uptake of apprenticeships has dropped dramatically by 60% since the introduction of the Levy. This is surprising considering the purpose of the Levy was to encourage employers to invest in upskilling their workforces in a bid to increase the UK’s productivity and address the skills shortage we are currently suffering from.


Research from the Chartered Institute for Professional Development (CIPD) states that 25% of employers surveyed do not know if they should be paying the apprenticeship levy. Surprisingly, despite having to pay this levy, only 59% of employers will use it to help provide apprenticeships, meaning 41% either will write this money off as a tax, or do not know how they will use this money.


The purpose of this Blog is to address some of the confusion surrounding the Levy, and hopefully provide some important information to Levy payers.

What is the Apprenticeship Levy?

Nothing short of an amazing opportunity!

A legal requirement for companies with a monthly payroll costs of over £250,000 to spend on quality and practical skills.

What about the small guys?

This is the gift horse we have been looking for!

We get to access the apprenticeship training, and only have to pay 10%. That means if you aspire to developing better skills then 90% is covered by the Government.

What are the downsides?

A little bit of ongoing planning, organisation and some paperwork.

But come on, seriously. What other business activity gives you over £27,000 of accredited training and you only have to pay £2,700.


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