Tag Archives: apprentice levy

Government’s apprentice plan to take money from NHS and councils

David Cameron has unveiled a plan to “boost apprenticeships and transform training”. No doubt it will have positive aspects, but – as so often – the cheery message hides some issues that should concern us.

Organisations are currently incentivised to take on apprentices with Government funding from BIS. For larger organisations in the public and private sector that is about to change. The funding will disappear completely and, instead, they will pay a tax called the “Apprenticeship Levy” to cover the costs.

This tax or levy will be hypothecated: companies will get first call on their own money and will be expected to spend it on the apprenticeship and training programmes where BIS previously covered much of the cost.

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