Government eases restrictions on Apprenticeship Levy funding

Government has changed rules on Apprenticeship Levy funding so that large firms who pay the Levy will be able to transfer up to 10% of their funds annually to multiple supply chain partners.

Previously, they were only able to share funds with one other employer. BESA director of training, Tony Howard has welcomed the news.

“It is something we have been fighting for since the Levy started last year. Sharing funding this way will allow many more SMEs to invest in apprentices.”

Only around 2% of employers will pay into the Levy - those with annual payrolls of £3 millions and above. The estimated annual pot of £3 billions is intended to be used by all employers to subsidise recruitment and training.

However, there has been confusion over how non-levy paying firms could access the money, resulting in a drop in apprentice numbers. The change to the rules should go some way to alleviating this issue.

Government aims to greatly increase apprenticeship training, so ensuring the process is accessible for business is key.




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