Do you understand the apprenticeship levy?
A fifth of apprenticeship levy-paying employers still don’t understand how the scheme works, three months after it was introduced. Research also revealed that a further 2% of the 200 senior managers questioned knew nothing about the levy at all. However, 85% believe the levy will have a positive impact on their organisation and 87% were confident it would benefit UK productivity and the economy.
The levy, which came into effect in April, is paid by businesses with a payroll of more than £3m per annum. These organisations are charged 0.5% of their total wage bill and, in return, the government adds 10p for every £1 paid by businesses to put towards training apprentices.
The levy has so far been met with mixed reactions. The Institute for Fiscal Studies described it as a “stealth tax” that was “poor value for money” in a report published in January.