Dealing with the Apprenticeship Levy

Posted on June 22, 2016 by Simon West

What is it?

In April 2017 the way the government funds apprenticeships in England is changing. Some employers will be required to contribute to a new apprenticeship levy, and there will be changes to the funding for apprenticeship training for all employers.

The apprenticeship levy requires all employers operating in the UK, with a pay bill over £3 million each year, to make an investment in apprenticeships of 0.5% of the pay bill. You can use this levy for training apprentices.

When does it happen?

Everything changes in April 2017, so you need to start planning now.  Apprenticeships started before April 2017 will be allowed to run to completion on the existing arrangements.

 Am I affected?

Yes!  Apprenticeship arrangements are changing for everyone but only businesses with a wage bill of over £3million per year will have to pay the levy.

Is this just about funding?

No!  There is a new concept of “Apprenticeship standards” being rolled out.  These will allow employers far greater input and control over the training of apprentices and mean you can develop the staff your business requires more effectively by controlling the content of their apprenticeship.

 What do I need to do?

This link on the Apprenticeship Levy will help you plan and the CIPD has produced a useful FAQ.

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