The New Apprenticeship Levy And The Charity Sector

0

This April, the government introduced the Apprenticeship Levy, which affects all organisations with a playbill over £3 million. It is important to note that the charity sector will not be exempt. This means that if a charitable or not-for-profit organisation does indeed pay out over 3 million, then they will be expected to pay the levy. Furthermore, charitable organisations are required to use the money towards recruitment and training of apprentices.

What is the apprenticeship levy?

Essentially, the apprenticeship levy will be a levy on UK employers, paying out over a certain amount, to fund apprenticeships in the future. The aim here is to collect investment from large employers which can be used directly to fund and maintain apprenticeships. The levy will apply to all organisations, whether they are in the private, public or charity sector, but only to about 3% of total employers who happen to have large payrolls.

  • Corporate New Business Manager - Blind Veterans UK (£39,210 per annum, South East)

    Blind Veterans UK

    South East

    £39,210 per annum

    View job Save job
    Corporate New Business Manager - Blind Veterans UK (£39,210 per annum, South East)
  • Philanthropy Coordinator - The Trussell Trust (£30,900 per annum plus benefits, Salisbury, Wiltshire, South West)

    The Trussell Trust

    Salisbury, Wiltshire, South West

    £30,900 per annum plus benefits

    View job Save job
    Philanthropy Coordinator - The Trussell Trust (£30,900 per annum plus benefits, Salisbury, Wiltshire, South West)
  • Deputy Face-to-Face Fundraising Manager - Shelter (£24,501 - £25,306 per annum plus excellent benefits, Manchester, Greater Manchester, North West)

    Shelter

    Manchester, Greater Manchester, North West

    £24,501 - £25,306 per annum plus excellent benefits

    View job Save job
    Deputy Face-to-Face Fundraising Manager - Shelter (£24,501 - £25,306 per annum plus excellent benefits, Manchester, Greater Manchester, North West)
  • Growth and Development Manager - FLAGDV (up to £35000 pro rata, Newbury, Berkshire, South East)

    FLAGDV

    Newbury, Berkshire, South East

    up to £35000 pro rata

    View job Save job
    Growth and Development Manager - FLAGDV (up to £35000 pro rata, Newbury, Berkshire, South East)
  • Head of Supply Chain Management and Procurement - Age UK (£65,000 to £70,000, City of London, London, Greater London)

    Age UK

    City of London, London, Greater London

    £65,000 to £70,000

    View job Save job
    Head of Supply Chain Management and Procurement - Age UK (£65,000 to £70,000, City of London, London, Greater London)

Who’s liable to pay?

All employers are liable to contribute, though the levy will only be charged to those with payrolls over £3 million, with a larger threshold for those paying out £6 million or more. The money must then be placed in a secure account specially for funding apprenticeships. The government will then provide £15,000 to offset the cost. Any remaining funds after 18 months will expire, then being made available for other organisations to fund their own schemes. (Phew, I think I made that as simple as possible!)

The New Apprenticeship Levy And The Charity Sector

How does it work? How much are we expected to pay?

  • The employer will be required to pay 0.5% of their pay bill toward the levy.
  • The money can then only be used for apprenticeship training and assessment.
  • All apprentices must meet government-set apprenticeships standards
  • There are no special caveats or loopholes for charities
  • Organisations who do not have a large enough pay bill, will have 100% of their apprenticeships training costs covered by the government. (For 16-18-year-olds)
The New Apprenticeship Levy And The Charity Sector

How will it affect charities?

Charities and not for profit organisations will be impacted by the levy in much the same way corporate companies are. There are no exemptions or exclusions currently in place which stop the levy from applying to the charity sector. Some have concerns over charities funding private sector apprentices, but this has not yet impacted the legislation. The Charity Finance group have written more extensively about this. While larger charities which fall among the 2% of liable organisations will be required to comply with the scheme, a vast majority of charities will not be expected to contribute due to the small size of their payroll. In fact, smaller charities may be eligible for the following support.

  • The government will contribute towards training and assessment.
  • If you have under 50 employees, they will be 100% of training costs for 16-18 years old.
  • Grants of up to £1500 are available for apprentices ages 16-24

 

Further information on the apprenticeship levy and charity sector

Topics

About Sanjay Bheenuck

Marketing Coordinator here at CharityJob. Writer of obscure fiction and global wanderer in my spare time. Which Way to Inner Space?

Read more articles

Continue the conversation on charityconnect

Meet others
making
a difference

Connect with people in the charity sector
to share ideas and discover opportunities.

Join us

Right now on Charity Connect

  • Richard Sved

    Richard Sved

    Director

    3rd Sector Mission Control

    Five charity interview tips

    “ My very first interview for a paid job in the charity sector was 21 years ago. My first successful charity job interview was around 6 months later. And since then... ”
  • Lizzi Hollis

    Lizzi Hollis

    Corporate Account Manager

    Independent Age

    5 things I learnt from ‘Equality in the Workplace’

    “ This month Fundraising magazine has published its first ever Equality in The Workplace report and as CharityConnect’s resident feminist writer I want to share with you 5 things I learnt from it... ”
  • Meredith Niles

    Meredith Niles

    Fundraising Director

    Marie Currie

    Time to come off the list?

    “ It's that time of year when each trip to the postbox reveals a fresh pile of warm wishes from friends and family. I am not especially disciplined about getting... ”
  • Clare Lucas

    Clare Lucas

    Activism Manager

    Mencap

    Time to rally, not to wallow

    “ So, I woke up this morning and for a moment I had forgotten that it was inauguration day; the day that Donald Trump would become the 45th President of the United States. Then I remembered... ”
  • Dawn Newton

    Dawn Newton

    Director

    Morello Marketing

    5 Ways Charities Can Benefit from Collaboration

    “ When organisations with a common aim work together, they can cut costs, improve outcomes and reduce duplication... ”

Join our Newsletter

Get the latest career tips sent directly to your inbox by subscribing to our newsletter!