From April 2017 Portsmouth City Council will be subject to the government's new apprenticeship levy. If you have any questions regarding the levy or the public sector target, please read the FAQs at the bottom of this section, contact firstname.lastname@example.org or call 023 9286 8236
Why are the government introducing the apprenticeship levy?
The levy is being introduced to fund a step change in the number and quality of apprenticeships, delivering on a commitment that there will be three million additional apprenticeship starts by 2020.
The levy will ensure that apprenticeships have secured funding, and that they help improve the technical and professional skills of the workforce and increase productivity.
What is the apprenticeships levy?
The levy applies to all employers, including the council, with a pay bill of over £3 million per year. A levy (0.5% of an employer’s pay bill) will be collected monthly via PAYE by HMRC. All employers will have an allowance of £15,000, which means that the levy is only applicable on pay bill over £3million.
What happens to the money once it is paid under the levy?
The money will be collected by HMRC. Individual employers’ funding for apprenticeship training in England will then be made available to them via a new Apprenticeship Service account, through which employers will be able to pay for training for apprentices. The service will also support employers to identify a training provider, choose an apprenticeship training course and find a candidate.
Will employers only be able to spend their levy money on apprentices?
Yes. Specifically, employers will be able to use their funding, up to a cap which will depend upon the standard or framework that is being trained against, to cover the costs of an apprentice’s training, including English and maths, assessment and certification. Currently these costs are eligible for government funding under the trailblazer standards and you can find more detail about this in the FAQs below.
The levy cannot be used to cover the salary costs of an apprentice.
What happens if the levy money if unspent?
The employer will have 24 months to spend the levy funds. If an employer does not spend their levy funds by this point then the unspent portion will be returned to the government and made available to other employers who are investing in apprenticeship training.
Exemptions and public sector target?
There will be no exemptions. All public sector employers with a pay bill over £3 million will pay the apprenticeship levy. To ensure that it does, the government will set the target that 2.3% of the workforce of all public sector bodies will be apprentices.