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EDA warns: Last chance to comment on Apprenticeship Levy

September 23, 2015

There are just 10 days left for you to comment on the Apprenticeship Levy that the Government proposes to introduce in 2017.

As it will affect our larger wholesaler and affiliated manufacturer members we want to ensure that you understand the implications of it for your business.

Please click here to view and download the 30-page document from the Department for Business Innovation & Skills (BIS).

Click here to respond to the consultation online by 2 October 2015 at 11:45pm.

Read our short overview below.

APPRENTICESHIP LEVY

On 21st August 2015, the Prime Minister unveiled plans to increase the number of good quality apprenticeships and give businesses a say in how they are run.

Employers across the country from all sectors are being asked to participate in a consultation on the introduction of an Apprenticeship Levy, set to be introduced in April 2017.

Whilst full details of the scheme are yet to be finalised, the charge is widely expected to be levied at between 0.5 to 1% of payroll cost, through monthly PAYE returns, on all businesses with over 250 employees.

USE IT OR LOSE IT!

Under the proposed approach employers who put in funds will have direct spending power over their contribution. Those employers who DO NOT invest in apprenticeships, using what are essentially their own funds, will lose their investment to fund training for those employers that do.

The Levy is part of the government’s pledge to support 3 million apprenticeships by 2020 in order to increase economic productivity.  Latest research indicates that for every pound invested in apprenticeships at Level 2 and Level 3, productivity benefits by £26 and £28 respectively.

With Gross Domestic Product (essentially the value of all goods and services produced by a country) in the UK currently 17% lower than the average for the G7, and 30% lower than the US and Germany, investment in training is a fundamental tool in reversing this position.

MAJOR CHANGES TO GOVERNMENT PROCUREMENT

The Levy will be underpinned by a requirement, from 1st September 2015, for all businesses applying for government contracts over £10 million to demonstrate a clear commitment to apprenticeships, in particular the number of apprentices a bid will support.  This commitment logically extends to the supply chain, and hence is of immediate relevance to the EDA and its members. 

The EDA offers a comprehensive apprenticeship recruitment, employment and training service to all members and affiliates.

The take-up of apprentices amongst EDA wholesaler members and affiliated manufacturers has doubled in the past year.

Information on how to get involved can be had from Joanna Key. Contact her on 01892 619990 or email joanna@eda.org.uk for information.

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