An employer with an annual pay bill of £2,000,000:
levy sum: 0.5% x £2,000,000 = £10,000
subtracting levy allowance: £10,000 – £15,000 = £0 annual levy payment
If you do not pay the levy, you won’t need to use the digital apprenticeship service to pay for apprenticeship training and assessment until at least 2018.
When the new funding system begins in May 2017, you will be able to choose the training you’d like your apprentices to receive, an approved training provider and an assessment organisation using the registers available on the digital apprenticeship service.
You will be asked to make a 10% contribution to the cost of this training and government will pay the rest (90%), up to the maximum amount of government funding available for that apprenticeship
You will be asked to pay this directly to your training provider and you will be able to spread it over the life time of the apprenticeship. As both you and the government make a payment this is called ‘co-investment’.
Every individual apprenticeship framework and standard will be allocated to a funding band. The upper limit of the funding band will cap the maximum price that government will ‘co-invest’ towards. You will be asked to pay your contribution directly to the provider and you will be able to spread it over the lifetime of the apprenticeship and agree a ‘flexible’ payment schedule with the provider.