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How Does the Apprenticeship Levy Work?

Still confused about the apprenticeship levy? Many people still are, even though it’s been over a year since its inception.

The levy has taken a bit of criticism since being introduced, a lot of which has focused on a lack of clarity over how the levy actually works.

This confusion has possibly contributed to the fact that 92% of levy funds went unspent within the first year of the scheme.

Our Director of Education and Skills Sean McCready has over 20 years’ experience pioneering the design and delivery of digital-first apprenticeships. Here he explains what the levy is, how it works and how to choose the right training style for your needs.

In the video above, Sean explains the importance of choosing the right type of training for your organisation:

“There are lots of different types of apprenticeships out there delivering the same standards, so it’s important that you work with your training provider to ensure they can provide the skills that you need, but also delivered in the way that you need to support the way your business operates.”

Another key point is that Sean makes is that the apprenticeship levy should be treated as an opportunity.

There have been concerns raised that some organisations may instead treat the levy as a tax and intentionally not spend it, but anyone doing this is missing out on the big benefits it can bring.

“The apprenticeship levy gives you an opportunity to review the skills needed in your business, looking at the skill set required both now and in the future.”

By using your fund and not letting it go to waste, you have the opportunity to plan effectively for the future, prevent skills gaps and build a loyal workforce.

If it’s left unused, it’s not just the money that’s squandered, but also the chance to develop a long-term talent strategy which, given the uncertainty over certain political factors, has never been more important.  


Still need help with the levy? Our apprenticeship consultants will support you from beginning to end.

See the digital-first apprenticeships we offer.