Chancellor Philip Hammond has revealed that the 10% fee that small businesses must pay when they take on apprentices will be halved from April 1st 2019.
In his Budget speech in October, Philip Hammond announced that the contribution non-levy paying companies pay towards apprenticeship training would fall to 5%. In his Spring statement the chancellor said:
“To help small businesses take on more apprentices I can announce that I am bringing forward the £700 million package of reforms I announced at the budget to the start of the new financial year in April.”
The 5% contribution will only apply to new starters when the change
comes into effect. The policy will also apply to levy-paying employers when their levy pot is empty. The government predicts that
cutting the co-investment in half will cost the Treasury an extra £70 million a year by 2022.
Don’t forget to consider using the NSAR Apprenticeship Levy Planner – designed to model the apprenticeship programmes that best fit the needs of an employer, small or large. The calculator is easy to use allowing employers to quickly see how to optimise its levy contribution and ensure that they are developing and investing in the right skills needed for the future.
For more information or to see how the NSAR Apprentice Levy Planner can help you, click here.