22 March 2024
The government has announced some changes to apprenticeships and the apprenticeship levy in a bid to support small businesses and remove burdens.
Improved Funding for Small Business Apprenticeships
From 1 April 2024, the government intends to fully fund apprenticeships in small businesses. This aims to reduce costs and burdens for businesses. This is brought alongside a £60 million of additional funding to make sure that where there is demand it can be met.
More Funding for Apprentice Levy Transfers
Additionally, from April, there will be an increase in the amount of funding employers who pay the apprenticeship levy are able to pass onto other businesses. Currently, 25% of the levy paid can be transferred, this will be increased to 50%.
SME Apprenticeship Threshold Set to Increase
It is also expected that the thresholds for defining a small and medium enterprise (SME) will be increased to bring more companies into the definition. However, further consultations will be required for this and is scheduled for later this year. This could bring the employee size threshold up to 500, up from 250, and the government states this will bring around 1,000 large businesses into being an SME.
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