The long awaited update from the government on the Apprenticeship Levy has been published and comes into effect from April 2017. Apprenticeships remain a government priority and their aim to achieve parity between vocational routes and academic routes into employment is being consolidated through the plans.
Employers with a pay bill of over £3m will have to pay the levy but they get a £15,000 allowance and a 10% top up from the government.
The government has listened to concerns from employers and;
- employers with fewer than 50 employees will not have to pay anything towards the cost of training a 16-to 18–year-old apprentice
- other non-levy paying employers will have to pay 10% of the apprenticeship training cost
- there is a £1,000 incentive if the apprentice is 16-18 years, young care leavers and young people with an Education and Health Care (EHC) plan, to allow them to make their first step into the world of work.
IMPACT as an Apprentice Training Agency (ATA) can help employers navigate through these changes and with young people looking for apprenticeships after school or college this is an ideal time to start discussions. If you want to see how the levy system will work for you check out the government’s new calculator or call us on 01509 515410.