Policy News Journal - 2016-17

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

Apprenticeship Levy employer guidance 14 December 2016

Employer guidance on the apprenticeship levy has been published which includes content for local authorities and schools.

Apprenticeship Levy for schools For maintained schools, the local authority is the employer. Each local authority has an annual allowance of £15,000. For voluntary-aided schools, foundation schools and academies, the governing body is the employer. Each governing body will be entitled to an allowance of £15,000.

Multi-academy trusts will get a single annual allowance of £15,000.

If a school becomes an academy part way through a tax year, the academy’s governing body will be responsible for the Apprenticeship Levy from this point and get a full allowance of £15,000.

CIPP comment

You can read the rest of the employer guidance on GOV.UK . We would recommend that this is read in conjunction with payroll software developer notifications and regulations for maximum benefit on the subject. See the Apprenticeships section at the beginning of the CIPP’s Policy News Journal (My CIPP/Policy hub on our website) for details of all previously published information.

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Scottish Government response to the UK Apprenticeship Levy consultation 10 January 2017

The Scottish Government has set out how they plan to develop a distinctly Scottish approach to apprenticeships and wider skills.

The Scottish Government Response to the UK Government Apprenticeship Levy sets out how Scottish Government plan to develop a distinctly Scottish approach to apprenticeships and wider skills development to drive closer engagement with industry supporting Scottish Government's efforts to enhance productivity and economic growth in 2017-18 and beyond. In July 2015 the UK Government announced its plans to introduce a UK wide Apprenticeship Levy from April 2017. Employers will pay 0.5% of their annual pay bill in excess of £3m through the PAYE system. Those with an annual paybill of £3m or less will be exempt. The Levy will apply to employers in the public, private and third sectors. The UK Government took this decision to introduce the levy without any prior consultation with the Scottish Government or indeed employers. While training levies and their collection are a matter reserved to the UK Government - skills policy including responsibility for apprenticeships is a fully devolved matter. = The UK Government will use the funding generated through the Levy to support its commitment to deliver apprenticeships in England during the lifetime of the current UK Parliament in addition to allocating a share of the Levy to each of the Devolved Administrations.

On 14 November 2016 the UK Government announced the Scottish Government’s settlement from the UK Apprenticeship Levy as set out below:

Population share of levy funding (£m)

2017-18 2018-19 2019-20

£221m £230m £239m


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