From 6th April 2017, employers with a wage bill of more than £3m will have to pay a 0.5 per cent levy to fund apprenticeships. This will affect employers in all sectors.
The aim is to raise £3bn a year to meet a target of three million new apprenticeships by 2020. With a clear focus on developing the UK's skills and improving long-term productivity, the Government is committed to increasing the quantity and quality of Apprenticeships whilst also putting control of funding firmly in the hands of employers.
The benefits of the Levy
- Funding will be directly controlled by employers via the digital apprenticeship account
- Revenue from the levy will help fund all post-16 apprenticeships in the UK
- Apprenticeships will no longer be able to be viewed as talent solution to a single business area at a fixed level, but will need to be viewed as a genuine route to the development of wider skills and future talent right across the organisation, across a range of levels of competence.