The Apprenticeship Levy Explained

Everything schools and MATs need to know about the apprenticeship levy and how to use it effectively.

What Is the Apprenticeship Levy?

The apprenticeship levy is a UK government policy that requires employers with an annual payroll over £3 million to contribute 0.5% of their payroll to fund apprenticeship training.

The Formula

(Annual Payroll × 0.5%) - £15,000 Allowance

All employers receive a £15,000 annual allowance, meaning only those with payrolls over £3m actually pay the levy.

Key Points for Schools

  • Levy funds sit in your Digital Apprenticeship Service (DAS) account
  • Funds expire after 12 months if unused
  • Can only be spent on approved apprenticeship training
  • MATs can transfer unused levy between schools
  • Government tops up levy by 10%

Who Pays the Levy?

Levy Payers

Annual payroll over £3 million

  • • Most MATs
  • • Large secondary schools
  • • Some large primary schools

Key benefit: Access levy funds directly from DAS account

Non-Levy Payers

Annual payroll under £3 million

  • • Most primary schools
  • • Smaller academies
  • • Maintained schools

Key benefit: Government funds 75% of training costs

Levy Loss Calculator

Find out how much levy funding you're losing every month by not investing in your staff

Common Levy Mistakes

Don't let these pitfalls cost your school valuable training funds

Letting Funds Expire

Levy funds expire after 12 months. Many schools lose thousands by not using them in time.

Wrong Programme Selection

Choosing programmes that don't align with school improvement priorities or staff needs.

Poor Provider Matching

Working with providers who don't understand education sector requirements.

Stop Losing Your Levy Funds

Book a free consultation with our levy specialists and start making the most of your apprenticeship funding.

Get Free Levy Advice
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