As part of the Autumn statement, the Chancellor announced a number of apprenticeship reforms that are aimed at ensuring the sustainability of quality apprenticeships. The precise detail is still in consultation, but we do know that there will be a new apprenticeship levy of 0.5% on company payrolls to raise £3bn a year to help fund the targeted three million apprenticeships.
Will the levy affect your business? Here’s our lowdown…
Who will pay? The levy will only apply to employers with a payroll bill of over £3m.
What will it pay for? The levy will support post-16 apprenticeships.
How much can an employer get out? In England, any business will be able to get back more than it puts in by training sufficient numbers of apprentices.
How will the funding be accessed by employers? The funding will be accessed by a digital voucher scheme.
How will it be implemented? There will be a formal discussion with businesses on the implementation of the levy.
When does it start? The levy will come into effect in April 2017.