Apprenticeship levy post funding predictions cut
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Apprenticeship levy post funding predictions cut - a general update as of April 2016 by Safaraz Ali of Pathway Group, Birmingham, UK
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Apprenticeship levy post funding predictions cut
- 1. Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup Apprenticeship Levy Post Funding Predictions Cut By £100m a year A general update using public information @SafarazAli https://uk.linkedin.com/in/safaraz
- 2. Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup Levy amount raised has fallen each year The amount of money that the levy is expected to raise has already fallen by £100m each year up to 2020/21. • Initial predictions by the Office of Budget Responsibility (OBR) in November showed that in 2017/18, the levy would raise£2.8Bn, in 2018/19 £2.9bn and £3bn in 2019/20. • However, the OBR figures published in March 2016 showed that these figures had been revised down by £100m
- 3. Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup Latest projections reflected revised earnings and employment forecasts A spokesperson from the Treasury confirmed that the OBR’s latest projections reflected the OBR’s revised earnings and employment forecasts. • What we know about levy being raised from a tax on PAYE is that the reduction is directly related to the OBR’s revised figures on earnings growth. • The £3bn levy pot of 2019/20 would be split with £2.5bn going to apprenticeships in England and remaining £500m to devolved nations The treasury have said that despite the £100m reduction, the £2.5bn apprenticeship pot would remain unchanged. • As for questions on whether the apprenticeship pot for Wales, Scotland and Ireland would be reduced to £400m, a Treasury spokesperson said they would be given “their fair share of the levy”
- 4. Want to learn more about partnering with us? See our company page: https://www.linkedin.com/company/pathwaygroup The levy update so far… The apprenticeship levy is set to take place in April 2017 and will be 0.5% of the employer’s payroll. It will only affect businesses with a payroll of £3m or more which is about 2-3% of employers • Any money raised from the levy will be ring-fenced to ensure it is only spent on training apprentices. • Any company paying the levy will receive a 10% top up on their monthly contributions • Companies can access the levy money from a digital account Nadhim Zahawi MP said at the Annual Apprenticeship conference 2016 that only levy-paying companies would have access to the Digital Apprenticeship System when it launches in 2017.