Apprenticeship levy consultation response

02 December 2015

Following announcements within the Spending Review and Autumn Statement, the Government has published its consultation response on the apprenticeship levy.

Apprenticeship Levy

Payable by larger employers, the apprenticeship levy will be introduced in April 2017 and set at a rate of 0.5% of an employer’s pay bill. Each employer will receive an allowance of £15,000 to offset against their levy payment. This means that the levy will only be paid on any pay bill in excess of £3 million and less than 2% of UK employers will pay it.

The levy will be paid through PAYE and it is expected that, by 2019-20, the levy will have raised £3 billion in the UK.

Spending on apprenticeships in England will be £2.5 billion, and Scotland, Wales and Northern Ireland will receive their fair share of the levy.

Consultation outcome: Apprenticeship levy: employer owned apprenticeship training

Next steps

The consultation response outlines the following as the next steps in the development and implementation of the apprenticeships levy:

“Whilst the consultation was an effective way of engaging with employers and a wide variety of stakeholders, it is by no means the only method we are using to engage with employers and stakeholders as we develop and implement the apprenticeship levy. As we set out further detail on how the levy will work in practice, we will continue to talk to employers and wider stakeholders.

We are engaging in further discussions now, which will continue throughout the design and policy development phase right through to implementation and beyond. The levy is a true opportunity to shape the skills system within the UK and drive up productivity and growth for the whole economy. The Government wants employers and stakeholders to be very much at the heart of this system.

If you would like to be involved in the development of the Digital Apprenticeship Service you can register your interest by e-mailing: DAS@bis.gsi.gov.uk.”