The apprenticeship levy in Wales

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The Economy, Infrastructure and Skills Committee carried out an inquiry into Apprenticeship Levy.

 

Summary

The aims of the inquiry were to hear the views of employers about the impact of the UK Apprenticeship Levy, to identify any cross border issues and to gauge employers’ and stakeholders’ reaction to the Minister for Skills and Science’s response to the levy and the funding of apprenticeships in Wales.

 

Background

The UK Apprenticeship Levy is a UK Government levy that is due to come into force from 6 April 2017.  All employers (Public and Private) with a pay bill of more than 3 million each year will pay the levy.  The levy rate is 0.5% of the employers' pay bill based on total employee earnings excluding payments, such as benefits in kind.  Employers will have a levy allowance of £15,000 per year to offset against the levy which is paid to HM Revenue and Customs through PAYE process.

 

The Committee looked at the following issues:

  • What are the implications of the introduction of the UK Apprenticeship Levy for employers in Wales?
  • Will there be different implications for public sector and private sector employers?
  • Are there any specific implications for employers who operate both in Wales and also throughout the UK (that you have not previously referred to in your response)?
  • If you have concerns about the funding of apprenticeships after the introduction of the UK levy, what would you like the Welsh Government to do to address your concerns?
  • What, if any, are the cross-border funding and policy issues which arise from the introduction of the Apprenticeship Levy (that you have not previously referred to in your response)?
  • Do you have any views about how the Welsh Government has engaged with employers with regard to the Apprenticeship Levy?
  • Do you have any general comments or concerns on the current system of funding of apprenticeships in Wales? What should the Welsh Government be doing to address any concerns you have identified?

 

Business type: Committee Inquiry

Reason considered: Assembly Business;

Status: Complete

First published: 10/11/2016

Documents

 

 

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