Apprenticeship levy – briefing for members and consultation response

The government has proposed a levy on larger employers across all sectors which will be used to pay for the training costs of apprenticeships. This member briefing and consultation response outlines the key information for housing associations to begin to consider the implications for their business.

13 October 2015

Announced in the Summer Budget the apprenticeship levy is a key policy in the government’s drive to hit its target of three million new apprenticeship starts by 2020. It will be mandatory for all larger employers across all sectors and will be payable regardless of whether employers actually offer apprenticeships within their organisation. Whilst there is much that is not yet known about how the apprenticeship levy will operate it has the potential to significantly alter how housing associations, both large and small, approach skills development for their staff and, potentially, their supply chain. There will also be implications for construction organisations as their existing training levy, administered by the CITB, evolves to take account of the new environment.

This member briefing gives more details on what is proposed. It also includes our response to the recent Department for Business, Innovation and Skills (BIS) consultation on the apprenticeships levy. In our response we focus on how the new apprenticeship levy can ensure that:

  • Quality training and apprenticeships are delivered within the construction industry
  • Those who face disadvantages in the labour market can take advantage of the growth in apprentices
  • The funding mechanism works effectively and supports business growth
  • Housing associations are supported to continue to deliver social value through apprentices in their supply chain
  • The system is genuinely employer led and structured to meet the needs of employers

This briefing has been updated in the light of the Spending Review in November 2015.