Chancellor George Osbourne announced that a new apprenticeship levy would be introduced in 2015’s Autumn Statement. It is due to be introduced in April 2017.
The levy, which is 0.5% charge on company payrolls, is hoped to fund up to 3 million apprenticeships. The new charge is designed to ensure that businesses support the cost of training workers.
Mr Osbourne said “It’s a huge reform to raise the skills of the nation and address one of the enduring weaknesses of the British economy.”
Confederation of British Industry (CBI) has warned that the apprenticeship levy could create huge cost implications without a guarantee that quality could improve.
It states that “with 2 million additional jobs to require higher-skills by 2022, it’s clear that the UK has a huge challenge on its hands.”
British Retail Consortium director-general Helen Dickenson said “The government is right to want to the increase the number of apprenticeships but in doing so it must make sure the quality is increased too.”
However, the Business Secretary, Sajid Javid said “Three million more apprenticeships by 2020 means even more life changing opportunities for our young people. More than that, apprenticeships make sense for business.”
3 reasons to invest in apprentices
Reduce skills gaps in your workforce
Apprentices are an excellent way to help grow your business. They can fill skill gaps and are a useful way to develop new areas of business.
Minimise the effect of an aging workforce
Investing in apprentices can help address the issues of aging workforces for a variety of industries. By bringing apprentices in on a regular basis, it will help reduce the impact of retirement.
Employing workers at the start of their career and training them increases the chances that they will remain with your company. This in turn can reduce recruitment costs and staff turnover, and increase employee motivation.
If you’re looking at hiring apprentices or you’d like to understand how Citation can help you manage this legislation change, contact the team today.
GET A FREE CONSULTATION
Get in touch to organise a free audit of your business.