How does the apprenticeship levy work?

Organisations with an annual payroll of £3 million or more contribute to the apprenticeship levy. Each month, 0.5% of the payroll is added as an apprenticeship voucher in their digital account, with a two-year validity. The government contributes an additional 10% monthly to these funds. Organisations utilise these vouchers for apprenticeship training, either by recruiting new apprentices or developing existing staff.