Apprenticeship Levy News
Apprenticeship Levy Update – August 2016
In May 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. A key aim of the levy is to encourage businesses to take on apprentices or alternatively, upskill their existing staff through an apprenticeship.
With the clock ticking away to the introduction of the levy, now is the right time for organisations to review their current apprenticeship programmes, consider the implications of the levy, changes to funding and consider how to maximise the opportunity and minimise the risk.
What does the levy mean for SMEs?
Non-levy paying businesses (around 98% of all businesses) will only have to contribute 10% of the costs of an apprentice’s training, with the government paying the remaining 90% through a new ‘co-investment’ model
The government are encouraging businesses to help 16-18 year olds, young care leavers and young people with an Education and Health Care (EHC) plan. If you take on an apprentice who meets these criteria, you will receive a £1,000 incentive payment to help meet the extra costs of employing them.
Companies with fewer than 50 employees will not have to pay anything towards the cost of training 16-to 18–year-old apprentices.