Consultation opens on the proposed apprenticeship levy

Growing money

27 / 8 / 2015 4.22pm

The government has launched a consultation on its proposal to introduce an apprenticeship levy on businesses to fund apprenticeship training.

The department for Business, Innovation and Skills (BIS) is inviting comments on the proposal from employers and training organisations until 2 October 2015 and is asking for views on a range of topics including how the fund can be best used for:

  • supporting 16-18 year olds
  • helping small companies
  • benefiting those employers who invest in training.  

Apprenticeships levy

The levy, which will be applied to large employers was first mentioned during the summer budget and is part of a wider strategy of reforming apprenticeships within the UK. The scheme will see employers issued with electronic vouchers which they can use to purchase training from recognised providers, giving them more choice and control over the training offered to apprentices. 

This latest move follows the introduction of a new set of standards designed to improve the quality of apprenticeships and build confidence in the brand. The government has set a target to create three million new apprenticeships within this parliament and is committed to abolish employer national insurance contributions for apprentices under the age of 25 from April 2016. 

It is proposed that the levy will be paid through existing PAYE returns to HMRC at a rate calculated on the basis on employee earnings. More detail regarding the rate and scope of the levy are still to be agreed and will be announced as part of the autumn spending review. 

How to Respond 

The consultation is open until 2 October 2015 and government is expected to respond in the autumn. You can reply to the consultation online or you can download the form and send to:

Apprenticeships Levy Consultation
Department for Business, Innovation and Skills
Spur 2
Level 2
1 Victoria Street

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