The Apprenticeship Levy, which came into force in April 2017, requires employers with pay bills over £3 million to pay 0.5% of their total gross pay bill to the government (through PAYE) which is then used to fund approved apprenticeship programmes. Each employer has an annual Apprenticeship Levy allowance of £15,000 to offset against their levy liability.
The Apprenticeship Levy has now been in force for a year. The government's aim in introducing the Levy was to reverse the decline in the use of apprenticeships by ring fencing funds which would be set aside in order to tackle skills shortages. One year on, has it worked?