Home News Government consults on proposed apprenticeship levy

The government has outlined its proposal to implement an apprenticeship levy which would see larger employers, both public and private, investing in training, as part of the government’s plans to introduce three million new apprenticeships by 2020.

Under the proposed system, employers who contribute funds will have a say in how apprenticeships are run and will have direct spending power over it.

Construction industry commentators  have expressed concerns that this move could jeopardise construction firms’ training plans, as speculation grows that the government’s apprenticeships changes could signal an end to the CITB.

The consultation document makes it clear the government is considering scrapping existing levy systems, including the levy on construction firms that funds the CITB.

The new look levy could be collected from larger employers in the UK. Larger employers in England will be able to spend the levy to support all of their post-16 apprenticeships. They will have direct and genuine control over their apprenticeship funding. This will be achieved through a voucher mechanism and those employers that are committed to apprenticeship training will be able to get back more than they put in. The government intends for the levy to be calculated on the basis of employee earnings and for employers to pay the levy through their PAYE return to HMRC.

The consultation only covers the implementation of the levy, with more detail on the levy rate and scope to be provided later this year.

The government is therefore seeking views on how to pay the levy, how the levy should work for employers who operate across the whole of the UK, how to make sure employers paying the levy have the opportunity to get more out than they put in and how best to give employers real control of apprenticeship training.

The consultation runs until 2 October 2015 and to find out more CLICK HERE