From April 2017 the government will introduce a levy to fund the step change needed to achieve 3 million apprenticeship starts and an uplift in their quality by 2020. The systems required to implement this in time for April 2017 are on track and are being tested on a regular basis. This includes progress by both HM Revenue and Customs (HMRC), with regards to the collection of the levy, and from the Skills Funding Agency who are building the digital accounts for employers to access levy funds.
The Department for Education has issued guidance for employers regarding the apprenticeship levy. Further guidance, confirming the funding policy, will be published shortly. HMRC has also issued guidance to software developers to ensure that employers’ payroll systems are ready for the apprenticeship levy and will publish further guidance for employers in December.
The government have been working with employers and training providers since the concept of the apprenticeship levy was introduced to ensure that it works for them. These conversations have played a major part in shaping how the apprenticeship levy will work and we will continue these discussions to assist employers and providers as they prepare for the introduction of the levy.