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Government consult on apprenticeship levy proposals

12 August 2016

The government today (12 August 2016) published proposals for a new funding model for apprenticeships and further details on the apprenticeship levy.

The levy will be paid by employers with an annual wage bill of £3m or more. The government has estimated that 530 employers in the transport and storage sector will between them be paying £65m a year to their digital levy account. This money can only be spent on apprenticeship training for their staff. If it is not spent it will be lost.

The government has proposed that employers that are too small to pay the levy will have 90% of the costs of training paid for by the government, reassuring millions of small businesses. Extra support - worth £2,000 per trainee - will also be available for employers and training providers that take on 16- to 18-year-old apprentices or young care leavers. Employers with fewer than 50 employees will also have 100% of training costs paid for by government if they take on these apprentices.

We have produced a briefing document covering the main points of these proposals. Click here.

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