Apprenticeship Levy

Apprenticeship reforms are being introduced by the Government to redefine the shape of the current apprenticeship system in order to meet the needs of the fast-changing economy.

Starting in April 2017, all employers operating in the UK, with an annual pay bill of over £3 million, will be required to pay 0.5% of their total pay bill on an apprenticeship levy. The Government will also be introducing an annual ‘levy allowance’ of £15,000 to assist with funding, meaning this would be deducted from the 0.5% of the annual pay bill.

Employers who pay the levy will also receive a 10% top-up from the Government towards monthly contributions. Therefore, for every £1 an employer pays in, they will be able to spend £1.10 of these funds on apprenticeship training.

The new apprenticeship reforms mean you will have more opportunity to directly drive the skills and training you need for your business.

If you require any assistance in dealing with Apprenticeship reforms please get in touch.