Apprenticeships FAQ

An apprenticeship is a nationally recognised qualification that allows you to earn a wage while you study. Through an apprenticeship, you’ll enhance your skills, gain practical industry experience, and obtain a relevant qualification as part of your paid employment.
During your apprenticeship, you’ll spend 80% of your working hours on on-the-job training and 20% on learning—both of which are paid by the employer. Employee benefits such as paid holiday leave are active from day one of learning as this is the date of employment.

There are four different categories or types of apprenticeships in England:

• Intermediate (Level 2)
• Advanced (Level 3)
• Higher (Levels 4-7)
• Degree* (Levels 6 and 7)

People can apply for an apprenticeship if they are:

• 16 or older
• not in full-time education
• live in England* 

*Makers currently only serve business registered in England for apprenticeships

The Apprenticeship Levy is a UK government initiative introduced in April 2017 to help fund apprenticeship training programs. It applies to employers based on their annual pay bill. Here's a breakdown of who is eligible for the Apprenticeship Levy:

1. Employers with a Pay Bill of Over £3 Million

Mandatory for large employers: The levy applies to any employer in the UK, whether in the public or private sector, with an annual pay bill exceeding £3 million.
The levy is 0.5% of the employer's total annual pay bill. However, there is a £15,000 annual allowance, meaning that only employers with a pay bill over £3 million will pay the levy.

2. Employers with a Pay Bill Under £3 Million

No direct payment: Employers with an annual pay bill under £3 million do not have to pay the levy.

Access to apprenticeship funding: These employers can still access government co-funding for apprenticeship training. The government typically covers 95% of the apprenticeship training costs, and the employer contributes the remaining 5%.

Does the levy expire?

Levy-paying employers can use the funds to pay for apprenticeship training and assessment. If they don’t use the funds within 24 months, the unused portion will be available to other employers for their apprenticeships.

Training for New Job Roles

The levy can be used to train employees for new roles within the company, provided they are undergoing an apprenticeship program designed to equip them with new skills. For example, AI & Data.

Existing Employees

Employers can use the levy funds to train new apprentices or existing employees as long as they are enrolled in a formal apprenticeship program that leads to an accredited qualification.

16 or over - there’s no upper age limit as long as the individual is not in education (full or part-time)

Wages and Other Employment Costs

The levy funds cannot be used to pay the apprentice’s wages or cover costs such as travel, work uniforms, or management of the apprentice.

Managerial Training

The levy cannot be used to fund training outside of an apprenticeship standard, such as general management training or training courses unrelated to the approved apprenticeship frameworks. This is inclusive of CDP training.

Recruitment or Setup Costs

Funds cannot be used to cover the costs of recruiting apprentices or any indirect costs of managing an apprenticeship program, such as infrastructure or resources within the organisation.

Training Outside of the UK

Levy funds can only be used for apprenticeship training for employees whose primary place of work is in England (as the system differs for Scotland, Wales, and Northern Ireland)

The apprenticeship service is a government online service which will allow you to set up and manage your apprenticeships.

All apprenticeships in England must be managed through the apprenticeship service and you will need to set up an account in order to use the service.

Why you need an account?

By creating an apprenticeship service account, you'll be able to:

• access and manage apprenticeship funding
• set up and approve apprentices
• advertise roles on the 'Find an apprenticeship' service
• approve training costs
• check payments to training providers
• give training providers permission to carry out some tasks on your behalf
• give feedback on apprenticeship training
  
  

• To create an account, you will need an email address
• Permission to add your PAYE schemes to the account
• Permission to accept the employer agreement on behalf of your organisation.

You will also need either the Government Gateway login for your organisation, or your accounts office reference number (AORN) and employer PAYE scheme reference number.

Click here to visit Gov.uk to create or sign in to your apprenticeship service account.