During the recent Budget announcement, the Chancellor of the Exchequer confirmed a bonus for employers who employ apprentices.
The Apprenticeship Levy is being introduced as part of the Government’s commitment to create three million apprenticeships by 2020, and is expected to raise £3bn annually across the country. From April 2017, employers with a pay bill of over £3m a year will have to pay 0.5% of their payroll costs towards the levy
The Government announced in the recent Budget that from April 2017, employers in Coastal West Sussex and beyond will receive a 10% top-up to their Apprenticeship Levy contributions. Although the detail isn’t yet clear, this should be available for them to spend on apprenticeship training through their digital account.
Many wonder whether this will help local employers to close the skills gap. Some employers have admitted that the skill sets of young people and the requirements of employers simply don’t match up. Once the top-up to the Apprenticeship Levy is available, it is hoped more businesses will be able to take on young people and help them acquire relevant skills on the job.