Page 14 - 10. Gi_Dec-Jan2019_LR
P. 14
NEWS | EDUCATION
Budget 2018: Apprenticeship fees
halved to 5% for small businesses
THE 10 PER CENT fee
that small businesses
must pay when they take
on apprentices will be
halved, the Chancellor has
announced.
Philip Hammond told the
Commons in his budget
speech that SMEs must
now only contribute ve
per cent to the training,
as part of a “£695 million
package to support
apprenticeships”.
The Treasury originally
told FE Week the change
would come into eect
from April 2019, but has
since backtracked on this
and said no xed date has
been decided on yet.
It comes aer Skills
Minister Anne Milton
told the Association
of Employment and The Treasury is making changes
Learning Providers (AELP) to the apprenticeship levy
conference in June that
issues with the fee have It is expected that the to start getting back to facility will rise from 10 to
been noted, but there change to a ve per cent oering apprenticeships 25 per cent from April 2019.
would not be a change to contribution will only apply to young people and local He said he will also
the rules anytime soon. to new starters when the communities.” consult with businesses
Announcing the change, change comes into eect. “We are grateful to Anne about further changes
Mr Hammond said: “As It is, however, not yet Milton and Robert Halfon to the levy from 2020,
well as backing businesses known if the contribution for their signicant eorts following the slow take up
to invest and grow, we will also apply to levy- in making this happen.” and employer criticisms.
will also make sure British paying employers when Shadow Skills Minister The apprenticeship levy is
workers are equipped with their levy pot is empty. Gordon Marsden welcomed paid by employers with an
the skills they need to The Treasury told FE the change but labelled it a annual payroll of £3 million
thrive and prosper. Week these details would “minor improvement”. or more, who can then
“We’ve introduced a new be decided on in early 2019. “This responds to the spend their contributions
system of T-level vocational The AELP has been strong lobbying there has on apprenticeship training.
training, introduced the heavily campaigning to been from the sector, and in Smaller employers can
rst £100 million into the remove the employer particular the AELP,” he said. also access the funds
new national retraining contribution rule as it “It’s a minor improvement generated through the levy,
scheme and through the believes it puts SMEs o but it doesn’t address some although they have had to
apprenticeship levy we are apprenticeships, and is the of the key issues for small pay 10 per cent towards
delivering three million new reason why starts have businesses with back-o¡ce the cost of the training ever
high quality apprenticeships fallen so much since the admin or the failure of since its introduction.
in this parliament. introduction of the levy. government to incentivise There was no mandatory
“That system is paid for Its Chief Executive small businesses by creative charge before May last
by employers and it has to Mark Dawe said: “This use and support of the year, simply an assumed
work for employers. is a major and positive apprenticeship levy.” contribution for apprentices
“In addition… I can shi which AELP has The change follows Mr aged 19 and over.
announce that for smaller been pushing hard for Hammond’s announcement Since last May, only 16- to
rms taking on apprentices since before the levy was at the Conservative Party 18-year-olds at employers
we will halve the amount introduced and it should Conference earlier this with fewer than 50 sta are
they have to contribute from enable providers to work month that the annual fully funded and therefore
10 per cent to ve per cent.” with smaller businesses apprenticeship levy transfer free to train. ■
14
News.indd 9 15/11/2018 14:23
