Have your say on the proposed Apprenticeship Levy
On 21st August 2015, the Prime Minister unveiled plans to increase the number of high quality apprenticeships and give businesses a say in how they are run.
UK employers are being asked to participate in a consultation on the introduction of an Apprenticeship Levy, due to be introduced in April 2017.
The charge is widely expected to be levied at between 0.5 to 1% of payroll cost, through monthly PAYE returns, on all businesses with over 250 employees.
The current proposal says that employers putting in funds will have direct spending power over their own Levy contribution for a limited time (yet to be announced). Those who do not invest in apprenticeships, by drawing down their own levy contribution, will lose any unspent levy to fund apprenticeships for those employers that do.
So the message for those with more than 250 employees is: ‘Use it or lose it’!
The Levy is part of the government’s pledge to support 3 million apprenticeships by 2020 in order to increase economic productivity.
Major changes to government procurement
The levy will be underpinned by a requirement, from 1st September this year, for all businesses applying for government contracts over £10m to demonstrate a clear commitment to apprenticeships, in particular the number of apprentices a bid will support. This commitment extends to the supply chain and is of immediate relevance to the EDA and its members.
The EDA offers a comprehensive apprenticeship recruitment, employment and training service to all members and affiliates, which can be accessed by contacting Joanna Key on 01892 619990, or email joanna@eda.org.uk.
The EDA is at the forefront of a Trailblazer group developing a new apprenticeship for the B2B sector which will cover every aspect of electrical wholesaling. The group has been working throughout the year, with a draft expected in October 2015, and all EDA members will be invited to participate in a consultation review of the standard shortly after.
John Henry, Managing Director, EDA Apprenticeships Plus said: “The current 16-18 apprenticeship training system will remain free until the introduction of the new model, which looks set to be partly funded by the levy.
“The EDA is working now to ensure that high quality sector-focussed qualifications and training support services, designed and implemented by EDA members for EDA members, already available now, are available from the outset of the new scheme.”
Have your say on the Proposed Levy at: https://www.gov.uk/government/consultations/apprenticeships-levy-employer-owned-apprenticeships-training
Note: The consultation closes on October 2nd.
www.eda.org.uk
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