UPDATE Apprenticeships - grow your own talent for the digital age – size of apprenticeship levy revealed
26 Nov 2015
International
2 min read
This article was produced by Olswang LLP, which joined with CMS on 1 May 2017.
Further to our post in September on apprenticeships in the digital age, the Chancellor has now announced the size and scope of the apprenticeship levy, plans for which were announced in the last Budget.
The headlines are that:
- the levy will be 0.5% of an employer’s pay bill;
- employers will receive an allowance of £15,000 to offset against their levy payment. This effectively means that the levy will only be paid on any pay bill in excess of £3 million and that just under 2% of employers will pay it; and
- the levy will be collected through PAYE and by 2019/20 will raise £3 billion in the UK.
The Government has also published its response to the consultation on the apprenticeship levy in which it says that it will continue to engage in further discussion with employers and wider stakeholders throughout the design and policy development phase through to implementation and beyond. This includes the development of the Digital Apprenticeship Service. For more details, the Government’s response can be viewed here.
