- Discover how the apprenticeship levy works for large employers and how it funds valuable apprenticeship programmes
- Find out how schools can access funding and recruit apprentices
- Explore approved qualifications and training providers to enhance professional development
The apprenticeship levy
The apprenticeship levy is a contribution required from large employers to fund apprenticeships. It is part of a wider effort to reform the apprenticeship system.
Since May 2017, employers with an annual pay bill over £3 million pay 0.5% of their total pay bill towards the levy. There is a 'levy allowance' of £15,000 per year, meaning employers pay 0.5% of their pay bill minus £15,000.
Example: An employer with a £5,000,000 pay bill will pay £10,000 for the levy:
- Levy sum: 0.5% x £5,000,000 = £25,000
- Subtracting allowance: £25,000 - £15,000 = £10,000 annual levy payment
Levy payments are made monthly through the PAYE process, like Income Tax and NI contributions.
Levy payments must be paid each month, based on the employer’s monthly pay bill, and will be paid through the PAYE process in the same way that Income Tax and NI contributions are paid.
Accessing funding for apprenticeship training
Levy-paying schools register for government gateway PAYE.
Non-levy schools access 95% government funding or 100% funding via the Hackney Apprenticeship Network.
Community schools access levy funds via Hackney Council.
Levy funds are for apprentices on a school's PAYE only. Agency-employed apprentices require agency funding.
If you want to support a member of staff from an agency, please get in touch with us for further advice.
How much schools can spend
Your total levy allowance is your levy contributions (0.5% of your pay bill) plus a 10% top-up from the government. For example, if your school's pay bill is £1.5 million, your annual levy allowance will be £8,250.
Apprenticeship qualifications range in cost from £2,000 to £27,000. The cost is split over the apprenticeship's duration. Schools can pool funds and access additional funding if approaching the spending limit.
How to recruit an apprentice
New hires can be apprentices, or existing employees can complete apprenticeship qualifications. The process involves identifying vacancies, selecting suitable qualifications, and planning recruitment and induction.
Good practice - dos and don'ts
Below are some areas to consider:
- Job description: This should be written without jargon, and should not ask for prior experience
- Interview: You should be looking for potential/aptitude, not prior experience. A work trial is a good idea prior to the interview.
Upskilling for existing staff
Levy funds can be used to train existing staff, but it must be an approved apprenticeship qualification. The learner must spend 20% of paid working hours on 'off-the-job training' linked to their current job. See further guidance.
Qualifications and training providers
When setting up an apprenticeship, choose an approved 'standard.' Contact the Apprenticeship Programme Team or Hackney Education OD lead for help finding the right one.
Schools can also select from approved national lists:
- Standards: New qualifications designed by employers.View a full list of approved standards.
Here is a list of some approved standards that schools may wish to consider:
|Business and Administration||3||£5,000||12 months|
|Property Maintenance Operative||2||£9,000||18 months|
|Teaching Assistant||3||£5,000||18 months|
|Teacher degree apprenticeship||6||£9,000||18 months|
|Early Years Educator||3||£6000||12-18 months|
|Early Years Lead Practitioner||5||£8000||24 months|
|School Business Professional||4||£6000||18 months|
|Facilities Services Operative||2||£3000||12 months|
|Facilities Management Supervisor||3||£4000||18 months|
|Facilities Manager||4||£6000||24 months|
|Chartered Manager (Degree)||6||£22000||48 months|
Choosing a training provider
We will assist you in finding a suitable provider and accessing funds through the council's apprenticeship service.
You can choose your provider, but contracts and payment must go through the council's account.
It is best to consider:
- Their track record
- Achievement rates
- Ofsted rating
- Registration on the apprenticeship providers list