The apprenticeship levy was introduced in2017 for large employers who have an annual payroll of £3 million. No levy will be paid on the first £3 million of their payroll, above this level it will be paid at a rate of 0.5% of the payroll cost through PAYE (alongside income tax and NI). As an example, this means that an organisation who has a payroll of £5 million will not pay levy on the first £3 million, however will pay 0.5% on the remaining £2 million. This sum then becomes the levy fund for that employer to use for apprenticeship training in their organisation.

While employers are required to pay the salary costs for apprentices, the costs for training are supported through the levy fund or co-investment. Costs for training will be determined by using a skills scan which will be carried out with individuals and consider their experience and current knowledge. This will determine the cost of the apprenticeship. Please call us at Milltech to discuss your apprenticeship needs and we will be happy to help.

At Milltech, we can support you with your apprentice recruitment by advertising the role, sourcing potential employees, screening them and arranging interviews so that you can choose the right person for your role. We will remove the recruitment process and carry this out for you, keeping you informed at all times and you will be allocated a Key Account Administrator who will work with you throughout the recruitment process.

We have detailed below the support that is available for apprenticeship funding, however we do recognise that there are many questions regarding the Levy and Co-Investment. Our teams at Milltech can help you considerably with this and advise on how we can help you with your apprenticeship recruitment and training.


Pay a levy of 0.5%

Pay a levy of 0.5% of the wages bill, placed in a holding fund drawing down funding to pay for their learners.

Payroll in excess of

5% of the training costs

With over 50 employees they will have to contribute 5% of the training costs for their learners.

For employers with

over 50 employees
Draw down from the ESFA

arrangements will continue as present with the funding for qualifications being directly drawn down from the ESFA.

For employers with

under 50 employees


What this Means for the Employer
Co-investment (for non-levy payers)
16 – 18-Year-Old Apprentices
What if I Don’t have the Funds in my Levy Balance
Apprenticeship levy explained
Who can use the apprenticeship levy?
Apprenticeship funding for employers
Government contribution for levy payers
Government incentives