Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

PM introduces levy to create more apprenticeships

Following on from the government’s pledge to create 3 million apprenticeships by 2020, Prime Minister David Cameron has announced the introduction of an apprenticeship levy.

It is being introduced with the aim of levelling the playing field, so that every large company contributes to developing the new generation of skilled apprentices as well as the training standards that they will require.

Although the government is yet to specify what constitutes a “large” employer, the Confederation of British Industry (CBI) has suggested this is likely to refer to businesses with 250 or more employees.

CBI also predict that the levy rate, which will be determined by HM Treasury, will be about 0.5% of payroll.

Countries already operating levy systems include the Netherlands, Denmark and South Korea.

APHC chief executive John Thompson said: “Although we would welcome any initiative that offers incentives to smaller businesses to engage in apprenticeship training, it is important that the levy costs do not discourage large employers from recruiting.

“Historically, the industry has withdrawn from a levy grant system because of the high costs involved in its policing and enforcement, which then left little value in the money collected. We will, of course, provide government with as much assistance and consultation as is required; however, the jury is still out with regard to the overall effectiveness of the initiative.”

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.