The apprenticeship levy that will require employers in the UK to fund apprenticeships has officially come into force today.
All public sector employers, including schools, will need to consider how they can increase the number of apprentices in their workforce. The way in which the levy applies to schools depends on the type of schools and the overall employer. We have put together information on what school leaders need to know and a breakdown based on school type which you can access here – Schools’ guide to apprenticeship reforms: what you need to know.
The Government said this is part of the “biggest shake-up of skills for a generation”.
The levy will apply to all employers in the UK with an annual wage bill of over £3m. It will require them to pay 0.5% of it towards funding apprenticeships. The money will then be invested in quality training for apprentices and double the annual investment in apprenticeships in England to £2.5m by 2019 to 2020.
For employers with an annual bill below £3m the Government promised it will provide “generous support” by paying 90% of the costs of training and assessing apprentices and 100% for companies with fewer than 50 employees.
Skills Minister Robert Halfon said:
There has never been a more important time for Britain to invest in the skills of our people and businesses. To make Britain stronger and fairer, we need to make sure that everyone gets the chance to climb the ladder of opportunity to gain the education and skills they need to be successful in life.
Our apprenticeship levy is a massive part of this. More than 90% of apprentices go into work or further training, and the quality on-the-job training on offer will make sure we have the people with the skills, knowledge and technical excellence to drive our country forward.
Building an apprenticeship and skills nation is essential in ensuring that we have the home-grown workforce we need in post-Brexit Britain to address the skills shortages facing industry and give everyone the chance to succeed.