Apprenticeships levy
Policy Briefing
Publication date:
23 November 2016
Last updated:
18 December 2023
Author(s):
Policy and Public Affairs
Sets out what is known about the detail of the levy, as well as the important questions that have yet to be answered.
Updated November 2016.
Following the 2015 General Election the government announced a significant change in the its policy towards apprenticeships. From April 2017, all firms in the UK will be subject to a compulsory apprenticeship levy. This will equate to 0.5% of a firm's pay bill - though every employer will receive a £15k allowance against the levy. In practice this means that the levy will only be paid on a pay bill of over £3 million. The money raised will pay for apprenticeships in England (only) and the government hopes it will encourage more employers to offer apprenticeship opportunities. This short briefing sets out the details of the levy.
The November 2016 update follows the confirmation of government proposals on apprenticeship funding. New content covers:
- how long firms will have to spend levy money; and
- conracting with the Skills Funding Agency.
View the Apprenticeship levy briefing »
Related articles:
Apprenticeships: The CII's guide to getting started
CII report: Bridging the gap. Student attitudes towards careers and insurance
This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), the CII group, local institute or Society, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies.
