The new Apprenticeship Levy – which came into effect on 6 April 2017 – requires all employers with an annual pay bill of over £3m to pay into an apprenticeship funding account. Once they have chosen their candidates and selected the apprenticeship training from the government’s Register of Apprenticeship Authorised Training Providers, this funding account can then be drawn on to pay for the training. 

The government makes a contribution and will top up the funds by 10 per cent, so for every £1 the employer puts into its levy account, it will have £1.10 to spend on apprenticeship training. 

At the end of the two-year cycle, any money left in the operator’s fund will go to the government – in effect making this a tax payment if it isn’t used.

Smaller operators aren’t subject to the Apprenticeship Levy, but will still be affected by a new co-investment plan (see Gary Denton’s comment below). 

We spoke to four industry leaders to find out what’s likely to be in store for levy-paying employers, employer/providers and smaller operators.