The construction sector has welcomed further clarity over the spending of the impending Apprenticeship Levy announced by Justine Greening, secretary of state for education, in a written statement to Parliament.
The Federation of Master Builders (FMB) approves of the ability for larger companies to transfer unspent apprenticeship funding to smaller firms and the Builders Merchants’ Federation (BMF) commented that the UK Government is right to listen to the building materials’ supply chain if it wants to switch the emphasis for investing in apprentices from taxpayers to employers.
With four months to go, the BMF has issued a briefing to all its members to outline the policy as it stands in England, highlight the main changes and explain the likely effects for building, plumbing and timber merchants and suppliers.
John Newcomb, managing director of the Builders Merchants’ Federation (BMF) said: “The BMF has been involved in the Apprenticeship Levy since the then Chancellor, George Osborne, announced it in July 2015 Budget. We did not ask for a compulsory new levy to be imposed on our members. There is a case for greater employer participation in the training and funding of apprentices, and we were not convinced the early proposals were the right ones.
“Taking on the youngest apprentices has additional costs for employers, such as extra time taken to supervise and mentor them. We are pleased that ministers have recognised this in additional payments for 16-18 year olds. We are also pleased that training for 16-18 olds by our members who employ fewer than 50 people will be met in full by the taxpayer.”
As of April 2017, all companies with a payroll of more than £3m will have to pay 0.5% of staff spending via PAYE to fund the system, regardless of whether or not they take on any apprentices. Initially, only those paying the levy will have access to the funds, but the plan is to give all employers access by 2020.
The incentive to those taking on apprentices comes in the form of digital vouchers as the more apprentices companies take on, the more training will be available to them. It has now been clarified that businesses will have 24 months to spend their vouchers before they expire and the funds are released back into the pot.
