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Government publishes apprenticeship levy details

The government has published details on how its apprenticeship levy will work.

Skills minister Robert Halfon unveiled the details as part of the government’s plan to create 3m new apprentices by 2020.

The levy will come into force on 6 April and any apprentice thats starts training after 1 May will be funded under the new system.

Types of apprenticeships will now come under one of 15 new funding bands, up from the previous number of six.

What does the apprenticeship levy mean for you? Read Construction News’ breakdown of the government’s new levy

The maximum limit for each band will range from £1,500 to £27,000, with firms unable to use government funds for training costs above that limit.

The details follow calls from the CBI and Build UK, which said the introduction of the levy should be delayed.

Under the new levy, companies with annual wage bills over £3m will pay 0.5 per cent of their PAYE into a government fund. 

Apprenticeships and skills minister Robert Halfon said: ”We need to make sure people of all ages and backgrounds have a chance to get on in life. Apprenticeships give young people - especially those from disadvantaged backgrounds - a ladder of ‎opportunity.

”That’s why we continue to work tirelessly to deliver the skills our country needs. The apprenticeship levy is absolutely crucial to this.

”Our businesses can only grow and compete on the world stage if they have the right people, with the right skills.

”The apprenticeship levy will help create millions of opportunities for individuals and employers. This will give our young people the chance they deserve in life and to build a highly-skilled future workforce that the UK needs.

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