To encourage more businesses to make use of apprenticeships, the government is introducing the apprenticeship levy this spring.

As of 6 April 2017, all employers operating in the UK with a pay bill over £3 million each year will be required to invest in apprenticeships.

These employers will need to spend 0.5% of their total pay bill on the apprenticeship levy. Once they have paid the levy, they will be able to access funding for apprenticeships to enhance their existing workforce.

If your business is eligible to pay the apprenticeships levy through the PAYE system administered by HMRC, you will be given access to a new digital apprenticeship service account. Through this account, you will be able to select apprenticeship training, choose your training provider and assessor and pay for training.

Businesses in Cumbria will be able to get out more than they pay into the levy, through a 10% top-up of funds from the government to their digital account to spend in England on apprenticeships.

That means for every £1 that enters your digital account to spend on apprenticeship training, you get £1.10.

Click here to estimate how much your business will have to spend on apprenticeships.

As well as employing new apprentices, businesses have the option to use the levy to pay for apprentice training to upskill existing employees with a Higher Apprenticeship. These apprenticeships are available from Level 4 to 7, the equivalent of a foundation degree and above to a bachelor’s degree and master’s degree. Higher Apprenticeships can be used to fill higher level skills gaps and keep businesses up to date with the latest thinking and technology in their field.

By 2020, all employers will be able to use the digital apprenticeship service to pay for training and assessment for apprenticeships.

Click here for more information on apprenticeships funding.