In the Summer Budget it was announced that three million new apprenticeships will be created by 2020, funded by a levy on large employers. The Government published its response to the consultation on the levy on 25 November and the core details were set out in the Spending Review and Autumn Statement 2015 at paragraph 1.173. The apprenticeship levy will be introduced in April 2017. It will be set at a rate of 0.5% of an employer’s pay bill. Each employer will receive an allowance of £15,000 to offset against their levy payment. This means that the levy will only be paid on any pay bill in excess of £3 million and that less than 2% of UK employers will pay it. The levy will be paid through PAYE. The statement also indicates that the Government will establish a new employer-led body to set apprenticeship standards and ensure quality.

Content Note

The aim is to provide summary information and comment on the subject areas covered. In particular, where employment tribunal and appellate court cases are reported, the information does not set out full details of all the facts, the legal arguments presented by the parties and the judgments made in every aspect of the case. Click on the links provided to access full details. If no link is provided contact us for further information. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, SM&B cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.