Apprenticeship levy: how it will work

The government announced the levy in the Summer Budget 2015. In the 2015 Autumn Statement the government provided details of who it would apply to and how much the rate would be. We held a public consultation on how the levy should work in practice. Legislation will be introduced in 2016 to create the apprenticeship levy through the Finance and Enterprise Bills.

The apprenticeship levy will be introduced in April 2017.

Who the levy affects

The levy will apply to all UK employers in both the private and public sectors.

It is payable on annual pay bills of more than £3 million. Employers with an annual pay bill of less than £3 million will not pay the levy. These employers will continue to have access to government funding to support apprenticeships. In June 2016 we will provide further details of what that support is expected to be.

Less than 2% of UK employers will pay the apprenticeship levy.

Employers who operate across the UK

The levy will apply to employers across the UK.

We’re working closely with the devolved administrations in Scotland, Wales and Northern Ireland, where skills policy is devolved. We’re committed to making the system work for employers wherever they are in the UK. In particular, we will consider what the best options are to make the system work simply and fairly, including for those close to borders within the UK.

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