Employers with 50 employees or fewer will have up to 100% of their apprenticeship training costs funded by the government.
The government has announced more details about its apprenticeship programme and the funding that will be available to businesses that take on apprentices.
The proposals relate to the reform of apprentice funding in May 2017.
An apprenticeship levy of 0.5% of a company’s annual tax bill will be payable by companies with a pay bill of £3 million or more.
Those employers too small to pay the levy (around 98% of employers in England) will have 90% of their training costs paid for by the proceeds. Extra support worth £2,000 per apprentice will also be available for those that take on apprentices that are 16-18 years old or young care leavers. Small employers will have 100% of their costs funded for taking on these apprentices.
The final details will be confirmed in the autumn.
Mike Spicer, director of research at the British Chambers of Commerce, said:
“It is disappointing that businesses will have to wait until October, just 6 months before the proposed implementation date of the levy, for details of the technical rules.”
Carolyn Fairbairn, director general at the Confederation of British Industry, said:
“The levy is too narrowly defined. It covers only 1 type of training and employers can only reclaim off-the-job costs. As a result, valuable forms of training risk being cut back.”
Contact Sue Stephens for advice on payroll and accounting for training costs.