Proposals for the Employer Apprenticeship Levy

Thursday, 15 September 2016 16:59

The government has launched a consultation into refining the proposals for Apprenticeship Levy which is set to come into force in April 2017.

The Apprentice Levy was initially announced in the 2015 budget. The aim was to apply a levy of 0.5% on employer annual pay bills that exceed over £3million. The money raised was then going to be used to support both large and smaller employers to provide apprenticeship schemes.

Small businesses with a wage roll of less than £3million will be able to have 90% of their training fees for apprentices paid on their behalf.

The new proposals will be extended to apprentices between the ages of 16 to 18. Employers will receive around £2,000 per apprentice from the scheme.

For businesses that have a wage roll in excess of £3million, they will be able to access similar support if they take on apprentices and the costs of the apprentices exceed the funds in their ‘digital account’. The ‘digital account’ is where allocated funding for apprenticeships will be held.

The new proposals set out a cap of between £1,500 and £27,000 on the amount of ‘digital funds’ an employer is able to allocate to each individual apprenticeship.

Levy funds can be used by an employer on any training which the employer considers to be beneficial to the apprentice. In theory, this allows employers to have greater control over their apprentice programmes. However, employers must use approved training providers that are accredited by the government.

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Author: Gareth Price Email:


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