Announced by the Chancellor in the 2016 Autumn Statement, the Apprenticeship Levy is expected to supplement Government Apprenticeship funding by raising £3bn annually.
The Levy will require you to make an investment into apprenticeships, from which you can benefit by training existing employees or new recruits and by bringing high level professional and technical skills to your business.
It will be calculated based on total employee earnings, not including other payments such as benefit in kind. Every employer will receive a £15,000 allowance to offset the costs, which means that only 2% of employers will pay.
Even with just a small percentage of employers contributing, the Government anticipates raising £3bn annually through the Levy.
Employers will be allocated funding via a digital voucher system, which can be used to purchase training from providers, giving them more choice and control over the training offered to apprentices. Ensuring that you make the right choice, and are informed in making that choice, will be important.