There has been much furore in the business world over the proposed apprenticeship levy.

Due to be introduced in April 2017, the levy is designed to help the government meet its target of creating 3m new apprenticeships by 2020. It represents a significant change in funding regulation, shifting financial responsibility for apprenticeships from the taxpayer and onto big business.

The proposed system dictates that businesses must pay a levy of 0.5% of total pay bill costs, minus a threshold of £15,000. Businesses with pay bill costs of more than £3m/year will end up paying the levy.

These levy funds will then be available to businesses for re­investment in apprenticeship training, plus a government top­up of 10%. This is key to understanding the levy as more than a straightforward business cost. 

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