The Apprenticeship Levy is a tax paid by large employers in England to fund apprenticeship programs. Companies with an annual payroll of over £3 million are required to contribute 0.5% of their payroll to the levy. The funds collected are used to pay for apprenticeship training and assessment. Employers can use their levy contributions to cover the costs of training apprentices, and any unused funds are available for other organisations to access. The levy aims to encourage businesses to invest in developing their workforce and increasing the number of apprenticeship opportunities.