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Members requested to respond to apprenticeship levy consultationSeptember 2015

Members are being asked to respond to a government consultation regarding the introduction of a new apprenticeship levy:

Apprenticeship Levy Consultation

The consultation forms part of the government’s pledge to support 3m apprenticeships by 2020, including a requirement to take a company’s apprenticeship offer into account when awarding large government contracts, and publishing new industry standards so apprentices have the skills that firms need.

The all-industry levy is expected to come into force from April 2017.

The consultation seeks views on:

  • paying the levy;
  • how the levy should work for employers who operate across the whole of the UK;
  • how to make sure that employers paying the levy have the opportunity to get more out than they put in;
  • how best to give employers control of apprenticeships.

The consultation closes on:  Friday 2nd October 2015.

This new all-industry apprenticeship levy could spell the end for the current Construction Industry Training Board (CITB) system, with government making it clear that is considering scrapping the existing system.

Levy systems already operate in over 50 countries, including Netherlands, Denmark and South Korea, and will ensure every larger company plays their part in investing in the future generation of apprenticeships. The levy will help cement the government’s aim to build a world class apprenticeship system, led by employers.

Investment in apprenticeships provide a great return for the country’s economy – the latest research indicates that for every pound invested in adult apprenticeships at Level 2 and Level 3, the country benefits £26 and £28 respectively.

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