Details of the apprenticeship levy to be paid by commercial organisations have been announced in today’s Autumn Statement. The levy has been set at 0.5% of payroll and will be payable by all businesses. An allowance of £15,000 will be given to all organisations to offset against the levy, which means that there will be effectively no charge for businesses with payrolls of less than £3 million.
Announcing the policy, Chancellor George Osborne said: “98% of all employers and all businesses with pay bills of less than £3 million will pay no levy at all. The levy will raise £3 billion a year and it will fund 3 million apprentices. It will address one of the enduring weaknesses of the British economy.”
The levy will come into effect in April 2017.
Jenny Pelling, Business Director at CILEx Law School said: “We anticipate that more legal services organisations, and commercial organisations with in-house legal departments, will consider setting up apprenticeship schemes in order to benefit from the money they have paid to the government. The Advanced Apprenticeship in Legal Services has proved to be an excellent vehicle for recruiting and training up young talent, and we look forward to working with our existing and new clients on this scheme and its Trailblazer successor.”