email: Call 01772 430004

Blog: Levy will reach out to communities



While some employers across the country have felt frustrated about unanswered questions regarding the new Apprenticeship Levy, the one guarantee is that the reforms which aim to support three million apprenticeships by 2020 will take effect next year.

From April 1, 2017, firms with an annual wage bill of more than £3million a year will pay 0.5% of their payroll to fund apprenticeships.

In its latest announcement, the government has outlined in more detail how the funding aspect of the new levy will work, as well as displaying a commitment towards supporting people from deprived areas – something which can only be welcomed by everyone affected by the initiative.

The government has revealed:

  • An adapted support system will be created to enable everyone to benefit from an apprenticeship, regardless of their location or background.
  • A payment of £1,000 will be made to employers when they take on 16 – 18 year olds, or 19 -24 year olds who have been in care or have an education and health care plan.
  • Employers will be given more time to spend the money within their digital account, with a 24-month limit instead of the proposed 18 months.
  • There will be an increase in funding for STEM apprenticeship frameworks – science, technology, engineering and mathematics – to support and inspire more people to pursue careers in those subjects.

The update spells good news for employers, easing the pressure on the timeframe in which to spend funds, and learners, who will benefit from a fairer system and new doors being opened for people regardless of factors which may have previously held them back.

However, with more detail now received and less than six months to go until the reforms take effect, it’s imperative businesses ensure they’re ready come April 1.

For advice on how to prepare for the Apprenticeship Levy, contact Jigsaw Training on 01772 430004 or

Our partners