Apprenticeship Levy

In August 2016, North Warwickshire & Hinckley College and South Leicestershire College officially merged, allowing us to re-structure our provision and share best practice.

Our offer is responsive to skills demands and LEP priority areas in Coventry & Warwickshire and Leicester & Leicestershire.

We are registered on the official Register of Apprenticeship Training Providers (March 2017).

As a training provider, we can:

  • Talk to you on an individual basis about the implications of moving from frameworks to standards
  • Take you through the transition from the current frameworks to the new standards
  • Advise employers when new standards are approved

Apprenticeship Reforms 2017

The Levy is a tax that applies to employers in England.

The levy applies to UK employers in both private and public sectors.

Only those who have an annual pay bill of £3 million or more will have to pay into the levy.

Those who do not have an annual PAYE £3 million or more will not pay into the levy.

If your annual PAYE bill is £3 million or more, you will be charged at a rate of 0.5% of your PAYE bill

The government will apply a monthly 10% top-up to funds that employers have available for Apprenticeship training, so every £1 will be increased to £1.10 in value

Levy payers will also receive a £1000 payment if they employ an apprentice who is:
Aged 16-18
Or aged 19-24 and has an education, health and care plan

All employers will receive a £15,000 fixed annual allowance to offset the levy payment

The levy can be reinvested into the organisation through Apprenticeship training – to new and/or existing staff

Non-levy paying employers will pay 10% of the cost of training and assessment of apprentices. The government will co-invest the remaining 90%

For organisations with fewer than 50 employees, the Government will fund the full cost of apprenticeship training if they employ an apprentice who is:
Aged 16-18
Or aged 19-24 and has an education, health and care plan.

For employers who do pay the levy but do not have enough funds to cover training and assessment costs, the government will co-invest.

The Apprenticeship Service Account allows levy-paying employers to manage their Apprenticeships online.
As a levy payer you can use this account to:
1. Find a training provider: you will only be able to select training providers
who are listed on the Register of Apprenticeship Training Providers (RoATP)
2. Find an assessment organisation, this will be different to your chosen training provider
3. Manage Apprenticeship funding
4. Sign your employer agreement
5. Recruit an Apprentice
6. Add Apprentices and authorise payments to your training provider
7. Monitor the balance of your funding

Non-levy paying employers won’t be able to register for an Apprenticeship Service Account until 2018.

The current Apprenticeship frameworks are being replaced with new standards.

  • Frameworks are currently being switched off in phases
  • The new standards are being designed by employer groups/ trailblazers
  • Rather than continuous assessment, they will require an end-point assessment

Regardless of whether you pay into the levy or not, all employers will be eligible to receive a £1000 payment when they employ an Apprentice who is:

  • Aged 16-18 at the start of their Apprenticeship
  • Aged 19-24 and has an education, health and care plan provided by the local authority or has been in the care of a local authority

Employers will be able to access Apprenticeship delivery from a training provider on the Register of Apprenticeship Training Providers (RoATP). North Warwickshire and South Leicestershire College are listed on the RoATP – discover more here.

What is an end point assessment centre?
The end point assessment centre is who will assess your Apprentice at the end of their programme. This centre will be different to the Apprenticeship training provider.

Employers will be able to search for a training provider and end point assessment centre via the Apprenticeship Service Account.


Non Levy Payer FAQs