The SIP will ensure that the Apprenticeship Levy works for member companies - ensuring maximum value and return from your levy contribution. The levy will be set at 0.5% of payroll.
It also means having influence on any sector arrangements such as funding levels for different Apprenticeship Standards and quality arrangements for training delivery.
David Yaxley, Director of Risk and Compliance at Victrex, and SIP member has said, “we support the role of the SIP in quality assuring providers to get excellent training delivery for the science industries. The ability for employers to combine through a sector body to administer the employer vouchers and negotiate with providers will strengthen employer ownership of the system.”
About the Levy
In his 2015 Autumn Statement and Comprehensive Spending Review, the Chancellor, George Osborne announced the new Apprenticeship Levy on employers. It is fundamental to achieving and funding the Government’s 3 million target for Apprenticeships by 2020, it stated:
- Confirmation of ambition to deliver 3 million high quality apprenticeships by 2020.
- Doubling of Apprenticeship spending from 2010/11 from £1.5 to £3 billion - including the income from the levy.
- Apprenticeship levy on larger employers to be set at a rate of 0.5% of an employer’s paybill. 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 paybill in excess of £3 million.
- Government will establish a new employer-led body – a “levy board” to oversee Apprenticeship standards and ensure quality. The body will be independent of Government and will also advise on the level of levy funding each apprenticeship should receive.
- Employers in England who pay the levy and are committed to Apprenticeship training will be able to “get out more than they pay into the levy”, through a top-up to their digital accounts.
What will the Apprenticeship levy cost your organisation?
The levy will be payable by any UK company with a salary bill of £3 million per annum or more, with an offset allowance of £15,000. The only way that you can then utilise this money is by offering Apprenticeship training to new or existing staff.
Try our handy calculator to see how much estimated levy will be collected from your organisation. The only information you need is your overall wage bill total.
Employers falling under the levy payment threshold can still take on apprentices and will be able to access government support and funding for the apprentice (subject to eligibility).
The Government’s initial response to the consultation process can be found here
Download the SIP Guide to the Apprenticeship levy.