According to the latest consultation proposals, the apprenticeship levy could be introduced from April next year…
The latest consultation on the apprenticeship levy suggests businesses could start paying from April 2017.
The levy will be implemented across businesses with a wage bill of £3m or higher, at a rate of 0.5 per cent of payroll.
The government has remained committed to pushing apprenticeships as an alternative route into the workplace. The consultation states that more support will be made available for businesses taking on apprentices between 16 and 18 and young care leavers, as well as full funding for these apprentices for firms with fewer than 50 employees.
The consultation, which is set to close in September, will apply to employers in England. The consultation notes funding will be available through the English scheme if the apprentice’s workplace is based in England, even if the business operates from another UK nation.
Skills minister Robert Halfron said: “Apprenticeships give young people – especially those from disadvantaged backgrounds – a ladder of opportunity.
“Our businesses can only grow and compete on the world stage if they have the right people, with the right skills.
“The apprenticeship levy will help create millions of opportunities for individuals and employers. This will give our young people the chance they deserve in life and to build a highly-skilled future workforce that the UK needs,” he said.
The consultation outlines how the levy will work, with a system comprising of 15 bands. These bands will have a limit ranging from £1,500 to £27,000.
Furthermore, the government plans to create a register of training providers, which will be available from April 2017. This register will help employers to find quality training providers and decide which training their apprentices receive.
Business group the CBI said the government needed to “take a step back from the political timetable and consider what is best for building the skills of our young people”.
Carolyn Fairbairn, the CBI’s director general, commented: “The April 2017 start date will not give firms sufficient time to prepare, so we urge the government to delay implementation.”
