Larger employers to pay 0.5% apprenticeship levy

A NEW apprenticeship levy will come into effect in April 2017 to fund the government’s target of creating 3 million apprentices by 2020.

Chancellor George Osborne today announced in the Autumn Statement that the levy, expected to raise £3bn a year, will stand at of 0.5% of an employer’s pay bill.

A £15,000 allowance for employers will mean that the levy will only be paid on employers’ pay bills over £3m.

The Chancellor said this meant that less than 2% of UK employers will pay, “with those paying it able to get out more than they put in”.

The Chancellor said that in the last parliament the number of apprentices more than doubled to 2 million and he called the government’s apprenticeship programme “the flagship of our commitment to skills”.

“To make sure they are high quality apprenticeships, we’ll increase the funding per place,” he said, adding that the Business Secretary will create a new business-led body to set standards.

“It’s a huge reform to raise the skills of the nation and address one of the enduring weaknesses of the British economy,” said Mr Osborne.

 

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