The Apprenticeship Levy

Make the most of changes to apprenticeship funding

Your apprenticeship partner

LifeCare is a specialist Health & Social Care Training Provider based in London since 1998. Alongside the Care Sector we are also experienced in providing training to support the development of skills in the wider sectors of Business Administration and Customer Service.

Our dedicated apprenticeships team each has a minimum of 8 years’ experience supporting London businesses with the delivery of apprenticeships. Every team member regularly updates skills and competence to ensure the best knowledge & practice are always maintained in the delivery of our whole service. With Gap analysis conducted with your account manager from the offset, we tailor apprenticeships and a wide range of specialist courses to effectively integrate with your HR development needs.

Where do I start?

The LifeCare team is here to help you navigate the apprenticeships process. Everyone on our team has at least 8 years experience delivering the very best apprenticeships, so we can help you work out what’s best for your business. Here’s your quick start guide to give you an idea of what’s involved.

What is the Apprenticeship Levy?

Starting in April 2017, all employers with a wage bill of over £3 million per year will have to pay a Levy of 0.5% of their wage bill into an online apprenticeship account, known as the Digital Apprenticeship Service. Employers can subtract a £15,000 allowance from the annual cost. The amount paid into the Levy will get a 10% government top up and then become available to spend on training apprentices.

More information for non-levy paying employers here.

What’s the point of the Levy?

What the Government says:

“The UK is not as productive as many other developed countries. Employers tell us that this is because there is a lack of technical skills in the workplace. Apprenticeships can meet that need by combining off-the-job training with a real job.”

What does it cost?

The simple answer is 0.5% of the annual wage bill. However, you do get an allowance of £15,000 per year, which you can subtract from the levy cost.

It is important to point out (again) that only employers with a wage bill over £3 million per year have to pay the Apprenticeship Levy. This will be paid to HMRC on a monthly basis as part of your PAYE.

What do I get out of it?

The amount you pay into your Digital Apprenticeship Service (DAS) account will get a top up from the Government. They will add an extra 10% of the amount you pay. You can then spend this money on training apprentices. You cannot use this fund to pay your apprentice as an employee, but remember, the minimum wage is normally lower for apprentices. The money in your DAS account is to be spent on classroom training and delivery of the apprenticeship, these are the services that LifeCare offer. Overall this is a really cost effective way to build a skilled workforce.

The Maths

Let’s break this down with an example:

Annual wage bill: £8,000,000

Calculate gross levy amount: 0.5% x £8,000,000 = £40,000

Subtract levy allowance: £40,000 – £15,000 = £25,000

Add government top up: £25,000 + 10% = £27,500

Total budget for apprenticeships training each year: £27,500

You need to calculate your annual wage bill to calculate the levy. You’ll be required to pay it on a monthly basis into your Digital Apprenticeship Service (DAS) account. You then have 24 months to spend this money on apprenticeships before the funds expire.

The Digital Apprenticeships Service

To help make apprenticeships even better, the government is launching a new system in April called the Digital Apprenticeship Service Platform. This is where funds from your Apprenticeship Levy will appear, it’s how you can set up an apprenticeship and pay for training out of your levy allowance. You can sign up for this now. Get in touch for more information.

Why employ an apprentice?

If you’re new to the notion of apprentices, you may be wondering why you’d want one. Our first hand experience is backed up by plenty of research which shows that apprenticeships offer a genuine boost to your team by filling skills gaps, saving you money and boosting motivation across the board.

Experience counts

Our dedicated apprenticeship delivery team each have more than 8 years experience in delivering apprenticeships.

Where do LifeCare come in?

Our role is to help you get the most out of your apprenticeship. We can provide a very flexible selection of recruitment, training and ongoing support services to help your business, your team and your apprentice.

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Get in touch from the start

We can help you identify how an apprenticeship will work for you based on our years of experience. We can help you with setup, as well as training and delivery.

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Training Delivery

As a training provider, we can teach the classroom elements of this apprenticeship, enabling your apprentice to achieve more

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Tailored recruitment

We use evidence based interview techniques, personality and skills-based testing to match you to your ideal apprentice.

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Ongoing support

We provide mentoring and pastoral support to you and your apprentice with gap analysis, regular health checks and experienced, practical guidance.

Your apprentices will be provided with

• High quality teaching by friendly and experienced staff
• Individualised mentoring and support throughout their time with us
• Confidence and skills building to maximise work performance
• Access to additional free/subsidised training courses
• Flexible patterns of classroom & work based learning to suit your organisation’s needs

Get in touch to get started

A Training Provider

Founded in 1998, LifeCare provide training, apprenticeships and domiciliary care services in London. Our experience as an employer and long term training provider enable us to provide meaningful support and real world advice for both you and your apprentice.

We’re incredibly proud of the achievements of the apprentices we’ve helped.

Read what employers have said about us

Matrix Certified

We’re accredited by Matrix to support and deliver apprenticeships using the Matrix Standard Framework. This enables us to look at the needs of your organisation and meet them through by addressing the needs of individuals. Lifecare Qualifications Ltd can be found on this directory.

Find us on Matrix