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Detail emerging on government Apprenticeship Levy

26 October 2016

Employers with an annual payroll of £3m or over will be required to contribute to the Apprenticeship Levy, the government has announced.

Applying to just 2% of employers, the government says the remaining 98% will receive 90% of their apprenticeship training costs from May 2017 onward.

Companies with less than 50 employees will have the entire cost covered for apprentices between the ages of 16 and 18 years old.

Employers taking on 19- to 24-year-olds who were in care or have an education and health care plan will also receive 100% of their costs.

It is further claimed that government spending on apprenticeships will have doubled by the end of this decade, compared with 2010 levels.

An example of the additional funding is the £60m provided to encourage more young people from deprived backgrounds to enrol in training schemes.

A new register of apprenticeship training providers has also been created, involving quality and financial tests, with those failing the Ofsted rating classed as ineligible to join.

The announcement goes some way to providing more detail about the Apprenticeship Levy and follows continuing industry discussion on what impact the scheme will have.

Skills Minister Robert Halfon said: "The reforms we are rolling out will guarantee support from employers and government."

The levy will boost economic productivity, increase the skills base and "give millions a leg up on the ladder of opportunity" said the minister.

Further information on the Apprenticeship Levy is available here.

Among the first to respond to the government announcement was Building Engineering Services Association director of training Tony Howard.

"This is the news we have been waiting for," he said.

"Employers need certainty about future funding provision so they can plan their recruitment strategies and this provides welcome reassurance."

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