Want to know how the introduction to the levy will affect your business?
The chancellor's 2015 Autumn Statement confirmed that, from 6th April 2017, employers with a wage bill of more than 3 million will have to pay a 0.5 per cent levy to fund apprenticeships. This will affect employers in all sectors however it is reported that less than 2% of UK employers will pay it.
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.
How will organisations benefit from the levy?
All employers will receive a £15,000 allowance to offset the payment of the levy, paid in digital vouchers. The government is creating an online portal known as the Digital Apprenticeship Service, which all organisations will have access to, regardless of whether they have contributed to the levy.
Employers can use the portal to source apprenticeships, find accredited training providers and pay for training with their digital vouchers. It is believed that those organisations committed to training will be able to get back more than they put in by training sufficient numbers of apprentices.
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