News

Apprenticeship Levy is coming

Mon 21 November 2016

Driven by their productivity agenda, the government is committed to achieving three million apprenticeship starts by summer 2020.

To do so, the government has confirmed the introduction of an Apprenticeship Levy from April 2017 – a fundamental change to the way Apprenticeships in England are funded. Employers with a UK pay bill of over £3m from both the private and public sectors will be required to pay 0.5% of that into a levy. The levy payment will then be ring-fenced in the form of an electronic voucher that can be used to purchase apprenticeship training.

The levy is the government’s logical solution to funding the increase in numbers and putting control of funding in the hands of employers.

Employers with a pay bill under £3m can also expect changes to the way their apprenticeship programme is funded in the future.

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