The Levy

In 2017, the government introduced an Apprenticeship Levy on all employers with a staff payroll of more than £3m. The levy is set at 0.5% of payroll costs, as declared to HMRC.


Levy contributions are collected on a monthly basis by HMRC.

All employers with payroll costs in excess of £3m have to pay the levy. There are no exceptions, and even public sector organisations are in scope.


The Levy represented a major shift in the way that government funds apprenticeships, and has had a significant impact on how the publicly-funded training provider market operates, together with the impact upon how and when companies recruit.

Allen Apprenticeships and Skills are uniquely placed to talk to you about how you maximise the return on your levy payments. We can show you how to introduce or grow an apprenticeship programme, so that you can maximise your return on the levy investment that you will be making.


We can work with you to guide you and your team through the impact that the levy is having, and advise how you can ensure that you are getting a genuine return on your investment.  After all, if you are a levy payer, it represents an additional cost to your business and could impact on how you spend your existing training and development funds, and how your recruit, especially if you recruit graduates.

Even if you are a small business, and are not in scope for the levy, then Allen Apprenticeships and Skills can guide you through how the market for apprentices will change as a result.


We can help you consider why you too should be employing an apprentice, and help you understand the benefits to your company.