Apprenticeship Levy 2017 – Latest News on the Government Proposal
The Government is proposing to launch a new Apprenticeship Levy in April 2017 to help support the delivery of apprenticeships nationwide.
Latest news from the Department for Education confirms that the majority of employers will only have to contribute 10 per cent to the cost of an apprenticeship from April 2017.
This means the government will pay 90 per cent of the costs for 98 per cent of employers, those with annual wage bills below £3m and therefore not paying the levy.
This 10 per cent arrangement is a tremendous boost for small employers who can continue to benefit from developing their workforce through the apprenticeship scheme.
Levy paying employers, those with annual payroll bills over £3m, will receive a 10 per cent monthly top-up. However, if their levy account has insufficient funds, 90 per cent of their additional apprenticeship training costs will be subsidised by the Government.
What is the Apprenticeship Levy?
- The levy will be effective from April 2017
- All employers with a pay bill above £3m will contribute
- Contributions will be 0.5% of the employer’s pay bill
How much will my levy payment be?
If you are an employer with a pay bill above £3m you will have to pay an annual apprenticeship levy of 0.5% of your total PAYE bill.
Benefits for businesses
The funds raised from the levy will help to deliver new apprenticeships nationally and will support quality training which your business can benefit from. Employers will also have the opportunity to claim the following additional financial support:
- A £1,000 incentive, paid to employers, to help 16-to-18 year-olds, young care leavers and young people with an Education and Health Care plan, make their first step into the world of work
- Employers with fewer than 50 employees will not have to pay anything towards the cost of training a 16-to-18 year-old apprentice, young care leaver or young person with an Education and Health Care plan.
To help employers see how the levy and funding system would work for them, the government has launched a new online calculator, which can be seen here.
For more information on the Government’s apprenticeship levy, click here.
Get in touch
We have an experienced team of Advisers available to help you maximise your apprenticeship levy payment. We specialise in conducting workforce skills analyses and creating apprenticeship strategies.
Whether you’re new to apprenticeships or already delivering them, our team of experts can work with you to:
- Help you understand what the apprenticeship levy means for your business
- Develop an apprenticeship strategy to ensure your business maximises its return on the levy investment
- Help you understand the new apprenticeship standards and how your existing work force development plans could benefit
- Recruit and select apprentices and develop career pathways
- Help you identify apprenticeship progression routes for existing employees
- Create a communications strategy, for example learning at work days, to drive apprenticeships forward in your organisation
We support employers and apprentices to create a service which combines support, training and valuable transferable employment skills. We can guide you through the new process to help your business maximise the benefits of the levy.
For further information on the apprenticeship levy and how we can support you please enquire here.
If you would like to discuss how you can benefit by taking on an apprentice, call our Business Solutions team on 0161 280 8650 or email us at: email@example.com