The apprenticeship levy has been a hot topic in the world of HR for the past few years. Naturally employers have been asking a lot of questions related to its implementation and restrictions. One increasingly common question asked is ‘what will employers be able to spend apprenticeship levy on?’
Levy-paying employers are able to create an account on the apprenticeship service to receive levy funds for them to spend on apprenticeships, manage their apprentices, pay their training providers and stop or pause to their training providers.
What can the apprenticeship levy fund be spent on?
Once they have access to the apprenticeship service account, employers can then use their funds to pay for apprenticeship training and assessment for apprentices that work at least 50% of the time in England. Employers can only spend up to the funding band maximum for that apprenticeship. If costs of training and assessment go over the funding band maximum, any difference in price must come from the employer’s budget.
What can the apprenticeship levy NOT be spent on?
The apprenticeship levy cannot be used to fund other costs of apprenticeships or other training costs. Government guidance says it cannot be spent on:
Employers can spend apprenticeship levy funding on apprenticeship training and end-point assessment (the assessment of apprentices by an independent organisation, required before they can complete the apprenticeship), either under an apprenticeship standard or an apprenticeship framework. The funding can be spent only with an approved training provider or an approved assessment organisation.
Employers cannot use the apprenticeship levy to fund other costs of apprenticeships or other training costs. Government guidance states that the levy cannot be spent on:
- wages;
- statutory licences to practice;
- travel and subsidiary costs;
- managerial costs;
- traineeships;
- work placement programmes; or
- the cost of setting up an apprenticeship programme.
In the case where apprentices have already been accepted onto an apprenticeship programme before the new system in England came into effect (1 May 2017), employers cannot use the levy to fund them.
In a nutshell
Employers can use the above list as a rough guide to what the apprenticeship levy fund can and cannot be used for. More details for specific circumstances can be found within your apprenticeship service account and the Government have produced guides to learn more about the levy here.
For more information, visit http://79.170.40.162/enlightenhr.com or contact Alison Benney:
alison@enlightenhr.com
Tel: 01803 469466 Mobile: 07967221595
