The Apprenticeship Levy was introduced after several reports commissioned in recent years by successive governments to make the UK better able to compete with the rest of the world with the pressure for increasing levels of educational and skills attainment.
The Apprenticeship Funding is spilt into two groups, Levy and Non-Levy.
Employers in the UK with an annual wage bill of more than £3 million pay 0.5% of their annual pay bill, minus an allowance of £15,000. The Government will then add a further 10% of what is in your account.
This amount is paid into your digital apprenticeship service account, this must be used within 24 months or the Government retain any that is not used.
If however you wish to use more than is paid into the account the Government will cover 90% of the additional amount .
You are also allowed to transfer up to 25% of your annual apprenticeship fund to another organisation to pay for their apprenticeship training within there organisation.
You can transfer any unused funds to those within your supply chain or locality.