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Apprentice Levy to go ahead next year, confirms Government


Apprentice Levy to go ahead next year, confirms Government

Posted by HJUK

On 12th August 2016, the Government announced it is sticking to plans for a levy on employers to help fund apprenticeships (Apprenticeship Levy). This comes despite business groups calling for the charge to be delayed due to the economic uncertainty fuelled by the Brexit vote.

Jill Whittaker, Managing Director of Hit Training, commenting on the announcement says “After months of speculation around whether the Apprenticeship Levy would go ahead, we can now finally put this to bed.... What this means is that the time to start planning is now.”

In a recent blog post, Hit Training has asked for a call to action and listed the key points employers need to be aware of when planning for the upcoming Apprecticeship Levy:

  • The Levy will be paid on payroll from April 2017, so the first Levy payment for employers will be in May.  Employers will then be able to purchase training, with a registered training provider, through a new digital system.
  • Levy employers will pay 0.5% of their payroll over £3m on a monthly basis. The Government will also top up the funds by 10%.  
  • The Levy can be used to fund apprenticeships for new or existing employees of any age or position, as long as there is a need for training.  If employers wish to spend more on apprenticeships than their Levy fund, then they will be asked to make 10% a contribution from May onwards.
  • Each apprenticeship framework will have a maximum funding band and the Government has set 15 different bands.  Employers can then negotiate an appropriate price with their training provider - for many larger businesses, if the employer has a training department they may be able to make the Levy go further by offsetting some of their own training input.
  • Non-Levy paying businesses with over 50 employees, or businesses that have used up their levy pot, will have to make a contribution of 10% towards the cost of apprenticeships. Smaller businesses will not have to make a contribution for apprentices up to the age of 23.
  • For all employers which take on an apprentice between 16 and 18 years old, they will receive £1,000 bonus payment from the Government.

For more information on the Apprenticeship Levy and advice on how to prepare, please visit or call HIT Training on 0800 093 5892. 

This post is written by Hospitality Jobs UK, an online advertising job board, established specifically for the Hospitality and Catering industries. We advertise Chef Jobs, Pub & Bar Jobs, Hotel Jobs, Restaurant Jobs, Leisure Jobs and Contract Catering Jobs. You can call us on 0844 800 6011 or email



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