Policy Response

Apprenticeships levy: employer owned apprenticeships training

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Apprenticeships levy: employer owned apprenticeships training

Published October 2015

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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.