‘The Office for Budget Responsibility (OBR) predicted in November that the levy would raise £2.8bn in 2017/18, £2.9bn in 2018/19 and £3bn in 2019/20.
The latest OBR figures (pictured), published last month, showed that the figures for each year had been revised down by £100m.
Levy funding is raised from a tax on PAYE and the reduction directly relates to the OBR’s revised figures on earnings growth. A Treasury spokesperson confirmed that the OBR’s latest projections reflected the OBR’s revised earnings and employment forecasts.
The money raised by the apprenticeship levy will be ring-fenced, so it can only be spent on training apprentices. All levy-paying companies will receive a 10 per cent top up on their monthly levy contributions, the government announced in the budget last month.’ – FE Week