In the Summer Budget in July 2015, the Chancellor announced the introduction of a levy on large employers to help fund its target to deliver 3 million new apprenticeships over the course of this Parliament. The levy is proposed to support the development of the skills base and help to drive productivity over the longer-term.
In August 2015 the Department for Business, Innovation and Skills (BIS) opened a consultation on the proposal, inviting evidence from those with a vested interest in the apprenticeship levy. In particular, BIS wanted to hear views on:
- How the levy should be paid
- How the levy should work for employers who operate across the whole of the UK
- How to ensure that employers paying the levy have the opportunity to get out more than they put in
- How to give employers control of apprenticeships
In informing its response to the Government, the CIPD conducted a survey of 275 large employers to gauge their views on the levy. In addition, the CIPD also held a number of interviews with senior HR and recruitment specialists within large organisations.