The levy is a tax all companies with a pay bill of more than £3m are required to pay. However, they can use this tax to take on apprentices, rather than just lose the money to tax.
Previously only levy paying companies could benefit from it, but now non-levy paying companies can also take advantage of it. A non-levy paying company is required to pay 5% of the apprenticeship cost and the Government will pay the remaining 95%. Limited pot of money available.