All UK employers with an annual pay bill over £3 million will make an investment in Apprenticeships (0.5% of their annual pay bill).

Each employer will have a threshold allowance of £15,000 to set off against that sum.


The Apprenticeship Levy aims to improve the number and quality of Apprenticeships.

The targets for the Levy include:

hitting a target of 3 million Apprenticeships by 2020

hitting a target of 3 million Apprenticeships by 2020

providing a sustainable workforce, bridging the skills gap affecting many industries

providing a sustainable workforce, bridging the skills gap affecting many industries


The Government estimates that less than 2% of UK employers will pay the Levy. That still translates to approximately 19,000 businesses across the UK.

The idea is that all employers (including those exempt from the Levy) will access the funding it produces.

The levy goes through PAYE and by 2019-2020 it's expected to raise £3 billion. This is double what the Government spent on apprenticeships in 2010-11.