Government apprenticeship reforms will come into place from April 2017 onwards. Organisations with an annual salary bill of £3 million or over will pay an Apprenticeship Levy. The Levy will be set at 0.5% of an employer’s wage bill.

Levy paying employers:

  • Can use their Levy to pay for the training of newly recruited apprentices and/or to up skill existing staff as apprentices
  • Will receive £15,000 from the government to offset against their Levy payment
  • Cannot use the Levy for apprenticeship salaries
  • Can only use their Levy payment to fund apprenticeship training delivered via government recognised providers, it cannot be used to fund any other kind of training
  • Will have 24 months to utilise their Levy payment
  • Will be able to access their Levy payment via the government’s Digital Apprenticeship Service (DAS) using digital vouchers
  • Will receive a £1,000 incentive for employing a 16 to 18 year apprentice
  • Must pay a 10% contribution for any apprenticeship delivery once their Levy payment is spent

You can calculate your Levy payment, including the government’s £15,000 contribution, by using the following calculation:
(Amount of your annual salary bill) divided by 0.5% minus £15,000 = (Your levy payment)

Please enter your salary bill in the box below to find out how much you will pay. The amount will be automatically calculated.

Please visit the Government website to read more about Apprenticeship Levy funding. To find out how many apprentices you can have working within your business based on the maximum levy band, please visit the FAS website and read their report.

Sunderland College has been working with local businesses for many years and throughout this time we have built a strong reputation for delivering high quality training provision to employers. As one of the largest non-profit apprenticeship providers in the North East we are keen to ensure that we offer the best possible support to the organisations we work in partnership with. Using industry knowledge our team of expertly trained staff provide our apprentices with the necessary skills to become a valuable asset to your business. We offer a broad range of apprenticeships across all sectors and industries and we’re keen to work with businesses to design effective apprenticeship programmes to benefit your business.

Over recent months we have been advising our clients on the best way to adapt to the plans and their next steps towards employing an apprentice. If you would like to meet with one of our representatives please contact us and we will arrange this with you. To make an enquiry, call us on 0191 511 6484 or email