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The Apprenticeship Levy

There is a skills gap, costing the UK economy over £63 billion a year, and the Levy is designed to allow businesses to address these shortages by investing in apprentices.

We have the expertise to help you understand how to use your Levy budget to maximise its potential. Even more, we ensure you get the very best candidates for your organisation by assisting you in your search for the very best apprentices.

The Levy at a glance:

  • £3 million

    Only businesses with a payroll of over £3 million are required to pay into the Levy

  • 0.5%

    Of the annual payroll is paid into the Levy

  • 5%

    Is the amount that non-levy payers contribute to the cost of an apprenticeship

Virtual Learning Campus

Arch, powered by AVADO, is one of the leading providers of future-facing professional Apprenticeship programmes. Here, we know how to help you navigate the tricky aspects of the Levy, so that you maximise its benefits.

We can help you convert this cost into a professional-grade training programme for your existing employees, as well as new staff. In doing so, we will ensure that this investment in training delivers a real return for your business and stakeholders.

Key services:
  • Account and levy management
  • Recruitment and onboarding
  • Delivery of the training and quality managemen
The apprenticeship levy has been a fantastic opportunity for us to grow our own digital talent and future proof ourselves against the well reported, nationwide, digital skills shortage. Our apprentices aren’t just college leavers we are also able to facilitate career changes through apprenticeship schemes helping us to diversify our talent pool and create an always learning culture.
Clare Jay

Future Talent Lead at N Brown


What if I don't pay into the Levy?

If you're a business that has an annual payroll of below £3 million, you're not required to pay the Levy. However, there's still plenty of benefits to using apprenticeships as a training mechanism:

  • You're only required to pay 5% of the total cost of the apprenticeship, the government covers the rest (e.g a £12,000 programme only costs £600 spread across three instalments)
  • Businesses with 49 employees or less have the entire cost covered by government
  • If you hire a 16-18-year-old (or up to 19 with an EHC plan) you receive a £1000 incentive
  • Apprentices make the most impact in smaller businesses and typically grow quicker!

How does the Levy benefit me?

Save costs

Apprenticeships are a cost-effective way to provide industry qualifications for your staff

Plug skill gaps

It's an opportunity to develop a workforce that meets the needs of your business

Invest in staff

Apprenticeships are excellent for filling entry-level positions but can also up-skill your existing staff

Increase productivity

Each apprentice in England is estimated to deliver an avg. positive net gain of £1670 p/a to their employers (source)

Transform your workforce today

76% of employers say that productivity has improved since hiring apprentices, with 75% reporting that apprenticeships improved the quality of their product or service. It's time to start benefiting from the Levy: (source)