The Apprenticeship Levy - Will You Be Contributing?
- february 23,2015
- Dave Rigby
You might be aware that April 2017 will see the introduction of the new Apprenticeship Levy scheme.
The aim of the scheme seems simple: to encourage organisations to help meet the government’s target of creating three million apprenticeships in the five years to 2020. Employers with a £3 million pay bill or more are required to make specified contributions in support of the scheme, which have been set at 0.5% of an organisation’s pay bill.
Those companies contributing to this fund will be able to access the central pot to spend on their apprenticeships each year. However, if they choose not to use these funds, they will be lost to the treasury after 18 months.
If you are an employer and you are not sure if you will have to pay into the scheme, please click HERE to find out more on the Government website.
Many have already shared concerns about the scheme, the first of which relates the complexity of the proposal; only being able to spend these funds directly on apprenticeship schemes does not support certain aspects of the methods used to train apprenticeships, such as mentoring – a sometimes vital aspect of development for apprentices.
Keep a look out for any further developments about the scheme, but if you can, make sure you plan to make use of it!
The CIPD, the UK's professional body for HR and people development, has published some interesting articles about the scheme and other concerns being raised, two of which you can access through the links below. We are sure there’ll be lots more to come!
If you are looking to recruit apprentices, and need some help or support, please do just get in touch with us – we can be reached on 01772 633854.
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