Businesses across England are being urged to take advantage of the new Apprenticeship Levy being introduced next month with the government topping up ten per cent of monthly payments made by Levy paying employers.
Research shows a third of UK businesses are confused or unaware of the financial implications of the new Apprenticeship Levy, however the Institute of the Motor Industry (IMI) is urging employers to see the vast benefits of investing in Apprenticeships.
The new Levy, which will be introduced on April 6, is set at a rate of 0.5 per cent of an employer’s annual payroll, but only employers with an annual payroll over three million pounds will have to make the contribution.
The changes to apprenticeship funding means non-levy paying businesses across England will now have to pay 10 per cent of the costs of their apprentice training and assessment, with the government covering the remaining 90 per cent.
Mark Armitage, senior apprenticeship manager at the IMI, said: “The new Apprenticeship Levy will provide an economic boost to England’s Apprentice system, provide young people with their first step on a career ladder, and increase the skills base across the sector.
“With employers at the heart of the apprenticeship reforms it’s important they understand the benefits apprenticeships can offer, and how important the new apprenticeship standards are in delivering good quality and highly skilled people.”
The levy can only be used to pay for the training and assessment of new apprentices in England from May 1, 2017, whether on apprenticeship frameworks or the new apprenticeship standards.
For further information about the levy, click ‘more details’ below.