Government’s apprenticeship Levy comes into force today
Employers with annual wage bill over £3m will pay levy to invest in high-quality apprenticeships and boost apprenticeship investment to £2.5bn by 2020
The government has announced the official launch of the apprenticeship levy today, which will require all UK employers with an annual wage bill of over £3m to pay 0.5% towards funding apprenticeships.
The money raised will be used to encourage employers to invest in high-quality apprenticeships and increase annual investment in apprenticeships in England to £2.5bn by 2020.
The government will pay 90% of the costs of training and assessing the apprentices of those employers with an annual pay bill below £3m, while companies with fewer than 50 employees that take apprentices aged between 16 and 18 will have 100% of their training costs paid for.
English employers can manage their funds and invest in apprenticeship training by setting up an online account.
Robert Halfon, skills minister, said: “There has never been a more important time for Britain to invest in the skills of our people and businesses.
“To make Britain stronger and fairer, we need to make sure that everyone gets the chance to climb the ladder of opportunity to gain the education and skills they need to be successful in life.
“[…] Building an apprenticeship and skills nation is essential in ensuring that we have the home-grown workforce we need in post-Brexit Britain to address the skills shortages facing industry and give everyone the chance to succeed.”
Government statistics show there has never been a better time to recruit an apprentice – learn how to hire one here.