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Preparing for the Apprenticeship Levy

On 19/12/16

We are now in the run-up to Christmas and the New Year is fast approaching, bringing with it a number of new opportunities and challenges for the trade. One issue is particularly imminent and comes into force on the 6th April 2017 – the Apprenticeship Levy.

This will form a major part of the BBPA employment conference that is taking place on the 2nd February. The Levy was first announced in the Summer Budget 2015 and follows a Government commitment to introduce a further three million apprenticeships by 2020. Any business with a pay roll of over £3 million will be required to pay. The Levy will be charged at a rate of 0.5% of an employer’s pay roll. Each employer will receive an allowance of £15,000 to offset against their Levy payment, and the Levy will coincide with the introduction of the new Apprenticeship Standards, which will increasingly replace the current Apprenticeship Frameworks.

It is vital, now more than ever, that those required to pay the Levy are certain that they know how best to utilise it. Whilst the Levy is a major new cost for many businesses. the BBPA will look to ensure that our members are fully prepared and can use it as an opportunity to invest in staff, increase productivity, and lead the way in shaping apprenticeship training. The Government will provide a 10% top-up on Levy funds, ensuring that employers receive more than they invest. Businesses not required to pay the Levy can also benefit from the new apprenticeship structure, with the Government willing to invest 90% of training funds for apprentices. This is a real opportunity.

The BBPA has produced a short briefing paper for members which gives a broad overview of the Levy, information on the new Apprenticeship Standards, and apprenticeship advice for businesses who will not be required to pay the Levy. We will also be hosting an event covering apprenticeships, as well as wider employment issues, on the 2nd February in London.

The event is free to members and we would advise booking your place as soon as possible by contacting David Sheen at the BBPA,


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