Government confirms apprenticeship levy plans

Grant Prior 8 years ago
Share

The Government’s new apprenticeship levy will come into force next Spring when firms with a wage bill of more than £3m will have to contribute 0.5% of annual pay.

Large companies will still have to make levy payments to the CITB as well with at least 900 firms facing a double whammy.

But CITB bosses are working on plans to hand back around £38m in duplicated payments in the form of rebates.

Today’s Government guidance said: “Some industries already operate levy systems, or other collective training arrangements. If you already contribute to one of these, you will still be required to pay the apprenticeship levy.

“The Industry Training Boards for the construction, engineering construction and film industries will consult their members on potential changes to their existing levy arrangements.”

Firms will have to start paying the new levy in April and can claim training grants from May from their “digital account”.

Apprenticeships will be graded into 15 new bands with funding allocated in each from £1,500 to £27,000.

The upper limit of each funding band will cap the maximum amount of digital funds an employer who pays the levy can use towards an individual apprenticeship.

For full details of the apprenticeship funding programme click here

Steve Radley, Director of Policy at CITB said: “This announcement brings mixed news for construction, but it’s good that Government has responded to what we said on the challenges faced by smaller firms.

“The co-investment rate for non-levy payers is lower than expected, at 10%, with the remaining 90% covered by funds raised  by the levy.

“It’s also encouraging to see that smaller firms will be exempt from co-investment if they take on a 16-18 year old apprentice. With more than half of all construction apprentices under the age of 19, this is a win for the industry.

“Companies of all sizes will also appreciate the £1,000 incentive for taking on one of these younger learners.

“But there is still work to do to make sure ensure funding bands reflect the actual costs of training, so that apprenticeships are affordable for companies of all sizes.

“We will seek further clarification from Government on how the bands have been set, and together with industry, set out the likely impact on construction firms and their ability to take on apprentices.

“We will now work with Government to ensure the Apprenticeship Levy works for the construction industry.

“Today’s proposals will inform our ongoing work to reshape the CITB grants scheme, so that it supports the most-needed skills and helps employers take on the apprentices construction vitally needs.”

Latest news

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
8 hours ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
13 hours ago

40% affordable homes target for Labour’s new towns

Labour pledges to select new town sites by end of first year
11 hours ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
16 hours ago

Surgo Construction went down owing £4.5m

Biggest creditor is Bellway Homes after dispute on housing job
15 hours ago

Vistry seals £157m West London housing deal

Around 575 homes to be built at Merrick Place scheme in Ealing
15 hours ago

Streamlined Watkin Jones returns to profit in first half

Multi-room specialist sees secured work pipeline hit £1.4bn
15 hours ago

Bellway hires ex-brickie as group construction chief

James Griffin to oversee move to the Future Homes Standard and timber frame.
16 hours ago

Persimmon under fire for delays to £10m relief road

West Suffolk Council serves Breach of Condition Notices after timetable slips again
16 hours ago

BAM wins £33m Kent secondary school job

Replacement Swanley academy to be built at live school site
16 hours ago

Aluminium cladding specialist collapses

Melton Mowbray-based firm worked for several main contractors
2 days ago

Brickwork contractor Lee Marley returns to profit

Affordable and rental homes demand lifts brickwork contractor
2 days ago

Housing contractor Durkan suffers second year of losses

More fire safety provisions tip firm into £3.9m loss
2 days ago

Farrans makes breakthrough on tricky tunnel job

Tunnel under Tees latest part of new £155m water pipeline job
2 days ago

Heidelberg buys aggregates and earthworks specialist B&A

Latest deal follows acquisition of Mick George
2 days ago

Flagship biodiversity net gain scheme flawed

NAO warns Government's flagship green development scheme at risk of failure
5 days ago

Plan in for £3bn Lincolnshire mega data centre

3.3m sq ft Humber Tech Park will be one of Europe's largest data centres
5 days ago

Green light for Digbeth 1,300 homes scheme

Warner’s Fields scheme to start with excavation and landscaping of the River Rea
5 days ago

£210m M3 Junction 9 upgrade gains consent

VolkerFitzpatrick to start work in early 2025 on Winnall roundabout, near Winchester
5 days ago

United Living wins 14-year L&Q homes repairs deal

Trafford housing upkeep deal worth £205m
5 days ago

£400m Lewisham resi-led scheme advances

Land deal paves way for Amro Partners' 1,000-home London scheme
5 days ago

McLaren gets go-ahead for Grade II listed Leeds student scheme

Springfield House to be revamped and two new wings added
5 days ago

Piling giant to fit people alarms on all rigs

Cementation Skanska upgrades site safety systems
5 days ago

Vistry to make £800m profit after subcontractor cost cuts

House builder bullish about shareholder returns after asking suppliers for discounts
6 days ago

Shareholders approve £2.5bn Barratt and Redrow merger

Final hurdle is for the competition regulator to approve the deal.
6 days ago

Green light for £80m Leith waterfront revamp

Build-to-rent homes and student accommodation scheme to be built
6 days ago

Tilbury Douglas clears Interserve legacy jobs to return to profit

Revenue tops £500m in first year as standalone contractor
6 days ago

Land deal paves way for Manchester civil service office hub

Government buys five acres at former Central Retail Park
6 days ago

Speller Metcalfe wins Wolverhampton library upgrade

Full works are due to start in the autumn
6 days ago

Skills shortage puts big infrastructure projects at risk

Government failing as an intelligent client and now over-reliant on consultancies
7 days ago

Contractor services