New apprenticeship levy could have implications for all BWF members

The Chancellor announced in his July Budget plans for ‘a levy on large UK employers’ to fund apprenticeships. The levy would support all post-16 apprenticeships, with employers in England able to access funding via a proposed voucher system. Devolved administrations in Scotland, Wales and Northern Ireland would decide how their levy funds are distributed.

The outcome of the consultation is likely to have a huge impact on the woodworking industry, regardless of size, as it could mean large employers paying a levy for the first time (as many are out of scope of CITB), but it may have implications for the continuation of CITB itself, which will affect smaller joinery firms.

Please read our consultation document and submit your views via an online survey by 14th September.

It is important to point out that the government's apprenitceship 'levy' is in fact an 'apprenticeship tax', which is to plug the hole in the goverment's finances to achieve 3m apprentices by 2020. The CITB levy does not currently raise funds for the government contribution to apprenticeships, but to proivide a financial incentive for the construction industry to train.

Large employers would pay the Apprenticeship Levy and be issued with vouchers (dependent on their levy contribution) to purchase apprenticeship training. The vouchers could then be redeemed with providers to cover the costs of an apprentice’s training, including English and maths, assessment and certification. Employers who do not spend their voucher allocation in a given time period could see the money re-distributed to those employers who want to train additional apprentices.

Small employers would use the same voucher system to purchase apprenticeship training but would not pay the Apprenticeship Levy. Government nevertheless ‘remains committed’ to ensuring small employers make cash contributions towards the cost of apprenticeship training.

We encourage as many members as possible to read our joint consultation with Build UK and to repsond to the questions posed via an online survey. The construction industry is committed to providing a coordinated response to government so that we have a clear and consistant voice.