‘An apprenticeship levy operating guide for employers, to be published in April, had been promised in last month’s budget.
The latest version of the guidance stated: “Funds will expire 18 months after they enter your digital account unless you spend them on apprenticeship training,”.
It continued: “Whenever a payment is taken from your digital account it will automatically use the funds that entered your account first. This will minimise the amount of expired funds.”
The apprenticeship levy, first announced by the government in July, is set at 0.5 per cent of an employer’s paybill.
As outlined in the new guidance, all employers will receive a £15,000 allowance to offset against the levy. This means that only businesses with a paybill of more than £3m – about 2 per cent of employers – will actually pay the levy.
The money raised by the apprenticeship levy will be ring-fenced, so it can only be spent on training apprentices.’ – FE Week