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Apprenticeship Levy

The Government has published the draft legislation introducing the apprenticeship levy, expected to come into force in April 2017. The levy is on UK employers to fund new apprenticeships. The levy will be charged at a rate of 0.5% of an employer’s paybill. Each employer will receive an allowance of £15,000 to offset against their levy payment - meaning it won't be payable by employers with a payroll under £3 million.

Comment

This new levy for apprentices is a controversial one, as it is being imposed on all sectors of employment, irrespective of whether individual sectors and employers need apprentices. It is also argued that it will, along with the new National Living Wage, increase costs for employers which may lead to job losses. Employment Solicitor, Chris Dobbs adds, "Only time will tell whether this will happen and there may be changes to the levy between now and April 2017, when it is due to come into force."

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