Call us today

More than a third of companies unaware of apprenticeship levy

Get in touch today - call Kent on 01634 570 390 or Surrey on 01737 370 493

Book a FREE consultation

If you would like to get some impartial advice, simply book a free consultation and we'll get in touch with you as soon as we can.

More than a third of companies unaware of apprenticeship levy

New research from the British Chambers of Commerce (BCC) has revealed that more than one in three businesses have not heard of the apprenticeship levy.

The BCC is calling on the government to communicate better with businesses about the apprenticeship funding reforms, which will affect businesses with a pay bill that exceeds £3 million a year.

Announced during the 2015 Summer Budget, the levy will be charged at a rate of 0.5 per cent of an employer’s total payroll and employers will receive an annual allowance of £15,000 to offset against their levy payment. It will be introduced on 6 April 2017.

Around 39 per cent of businesses questioned by the BCC were unaware of how the apprenticeship levy operated, according to the study, while more than half (51 per cent) did not understand how the levy worked above or below the £3 million pay bill threshold.

Only 11 per cent said the reforms would increase their recruitment of apprentices, while just 5 per cent of businesses said they will have a positive impact on their wider training budget.

This is despite 30 per cent of those polled in the study falling under the scope of the levy, of which only 26 per cent expected to recover all or more of their levy payment.

Marcus Mason, head of education and skills at the BCC, said: “The government needs to ensure that businesses understand how they could benefit from the reforms, because if it just feels like yet another tax then the policy will have failed.

“Devolved administrations also need to provide a guarantee that the money raised is ring-fenced and kept for training.

“The government should allow businesses to use the levy funding to support other high-quality workplace training or there is a risk of displacing other valid forms of training. Fundamentally, treating apprenticeships as a numbers game would benefit neither businesses nor apprentices themselves.”

The BCC survey of 1,600 business leaders across the UK was conducted in association with Middlesex University.

LINK: BCC Apprenticeship Levy Study


Urgent COVID-19 Notice
Working From Home

Our first priority is the health and well-being of our team and our community. Therefore, with a heavy heart we have made the decision to temporarily work from home with immediate effect.

We are listening to the government’s daily updates, taking each day as it comes, and will reopen our offices as soon as it is safe to do so.

If you have any questions or need to discuss any issues at all please do email or call us on our usual number 01634 570 390.

The general email is

We hope everyone is keeping well and staying safe.

This website uses cookies to enhance your browsing experience... moregot it