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Treasury proposes reform of apprenticeship levy

printer Mail

HM Treasury has announced further government funding to enable employers to spread apprenticeship funds to businesses in their supply chains and for implementation of updated apprenticeship standards by 2020. The government will shortly launch a consultation on the operation of the apprenticeship levy after 2020.

An extra £90m of government funding will enable employers to invest a quarter of their apprenticeship funds on people working for businesses in their supply chain. The government says the changes are aimed at providing flexibility for businesses, so they can ‘take full advantage of the benefits of employing apprentices’.

A further £5m has been announced for the Institute for Apprenticeships to introduce new standards and update existing ones to enable more courses to be offered.

The government will ‘in the coming weeks’ consult on the operation of the levy after 2020 ‘to ensure it supports the development of the skilled workforce businesses need for the new economy’.