Policy News Journal - 2016-17

The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal

across a variety of sectors to better understand the impact that the Levy will have, and their thoughts on how Levy funding could be used in to enhance productivity and economic growth.

“After those discussions with employers it is clear that they are looking for a wider approach than what is being developed by the UK Government. This is why we have decided to consult with industry on how this levy can be used to support apprenticeships and wider skills development. An important part of this consultation will involve working with the newly established Scottish Apprenticeship Advisory Board as well as other industry bodies and individual employers. “In Scotland, we are seeing some real success in supporting young people into work and making sure that they have the right skills for the future. We have surpassed our target to deliver 25,500 modern apprenticeship starts this year, this will now increase to 26,000 for the year ahead and we are looking to work with employers to support our ambitions to increase starts to 30,000 by 2020. Our commitment to growing and enhancing the Modern Apprenticeship programme remains a key priority for this Government” Mr Hepburn announced that, following the UK Government’s decision to implement an Apprenticeship Levy, the Scottish Government will launch a consultation on 13 July to seek views on how the Levy can enhance productivity and economy growth in Scotland.

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Scotland consult on the Apprenticeship Levy 15 July 2016

As previously announced by the Scottish Government a consultation has been published to enable employers to have their say on how Scotland should use its share of the funding from the UK Government’s apprenticeship levy.

From April 2017, some employers will be required to contribute to a new apprenticeship levy, and there will be changes to the funding for apprenticeship training for all employers.

Minister for Employability and Training Jamie Hepburn said:

“The introduction of this levy is of fundamental concern for us. The UK Government has introduced this levy without any consultation with Scotland, despite the fact that apprenticeship policy is devolved to the Scottish Parliament.”

In a letter to skills ministers, Mr Hepburn said:

“We are aware of the importance of involving employers in Scotland in shaping our response on how we should use our share of the funding. Devolved Administrations have yet to receive final details of the financial settlement that they will receive from the introduction of the Apprenticeship Levy. “Over recent months the Scottish Government has been engaging with a range of employers and representative bodies across a variety of sectors to better understand the impact that the levy will have. It is clear from engagement to date that employers in Scotland are looking for a much broader offer than that being developed in England. I am keen that we work with employers to achieve this. “That is why we have launched consultation with employers to develop a distinctly Scottish approach, which supports apprenticeships and wider skills development and drives closer engagement with industry in our efforts to enhance productivity and economic growth. We will use our findings from the consultation with employers and other interested parties to inform our Spending Review decisions in the autumn. “The introduction of the levy will have a significant impact on the skills delivery in the devolved administrations. Given the level of interest and concern from businesses around the levy across the UK, I have proposed to host a meeting in Scotland with the Skills Ministers from across the UK .This is a high priority for all four nations so I would hope we could meet at the earliest opportunity.”

Further information on the background to Scotland’s response to the Apprenticeship Levy can be found here .

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