Our training, your way

The Apprenticeship Levy to go ahead despite concerns over Brexit

01 October 2016


Economic uncertainty resulting from June’s Brexit vote, has been cited by lobbyists as an argument to delay the introduction of the new Apprenticeship Levy scheme. These calls have been ignored by Teresa May’s government, who have confirmed in August that the Apprenticeship Levy will be introduced as planned, at the start of the new financial year.

The government is pressing ahead in a bid to address national skills shortages and tackle inequality – an issue particularly high on the new Prime Minister’s agenda. In a recent article for the guardian* Apprenticeships were described as “a ladder of ‎opportunity” and “a chance to get on in life” by Robert Halfon, the Apprenticeships and skills minister, referencing in particular young people and those from disadvantaged backgrounds.

The levy will be paid by employers in England with a payroll in excess of £3m and will be charged at a rate of 0.5% of their annual pay bill.  With regard to the impact of Brexit, if anything it points towards a positive introduction of the new levy, as identified by Jonathan Clifton, associate director for public services within The Institute for Public Policy Research; 

 

“Following Brexit, British employers may not be able to rely on recruiting migrant workers to fill skills gaps, so we’ll need more apprenticeships to train up our domestic workforce”.

JOHNATHON CLIFTON

ASSOCIATE DIRECTOR FOR PUBLIC SERVICES WITHIN THE INSTITUTE FOR PUBLIC POLICY RESARCH

The message coming clearly from the government is that the Apprenticeship Levy will be going ahead next April and that those paying it will get out more than they put in. You can read more about The Levy or call us to discuss how it will affect your business on 0800 738 2545.