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Latest Apprenticeship Levy News

The way apprenticeships in England are funded is changing. The apprenticeship levy is a new tax on businesses that will be introduced from April 2017 to help support government's target of 3 million apprenticeship starts 2020.

These are huge changes and may seem daunting, but Semta can support you every step of the way. Our proud heritage "engineering" apprenticeships in the sector for over 60 years means our experts can help you to get the best return on your levy investment. 


Latest update 25 October 2016

Following extensive consultation with employers and training providers, the Government have published the final funding policy that will take effect from May 2017 when the new Apprenticeship Levy is introduced. Details of the new register of apprenticeship training providers has also been announced. The following adjustments have been made to the funding policy since the Governments proposals were announced in August which will help ensure that the reforms benefit more employers, providers and apprentices.

The key features announced are:

  • Higher funding for STEM apprenticeship frameworks and higher pricing of apprenticeship standards to support improved quality, and greater flexibility to train those with prior qualifications;

  • Longer period of time for employers to spend funds in their digital account, now with 24 months before they expire, an increase from the original proposal of just 18 months;

  • A commitment to introducing the ability for employers to transfer digital funds to other employers in their supply chains, sector or to Apprenticeship Training Agencies in 2018;

  • 90% contribution from government to the cost of training for employers that will not pay the levy;

  • 100% contribution from government to the cost of training for small employers that will not pay the levy and who take on apprentices who are 16 to 18 years old;

  • £1,000 each from government to employers and training providers when they take on 16 to 18 year olds;

  • Help for training providers to adapt to the new, simpler funding model through an additional cash payment equal to 20% of the funding band maximum where they train 16 to 18 year olds on frameworks; and

  • A simplified version of the current system of support for people from disadvantaged areas to ensure the opportunity to undertake an apprenticeship is open to everyone, no matter where in England they live, their background or family circumstances.

To read the full report click here

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