Employers will receive a 10 per cent top-up to their monthly levy contributions as a result of today’s budget.
Chancellor George Osborne only briefly mentioned the levy in his speech to the House of Commons at lunchtime.
However, the 10 per cent top-up plans were unveiled in a budget report subsequently published by the Treasury.
It will mean, for example, if an employer pays a £2,000 levy, then its levy pot will be £2,200.
“From April 2017, employers will receive a 10 per cent top-up to their monthly levy contributions in England and this will be available for them to spend on apprenticeship training through their digital account,” said the Treasury.
“The government will set out further details on the operating model in April and draft funding rates will be published in June.”
The new measure comes in addition to the £15,000 allowance previously announced for levy payers.
The Treasury re-iterated today that the levy “will be set at a rate of 0.5 per cent of an employer’s paybill and will be paid through PAYE”.
“Each employer will receive an allowance of £15,000 to offset against their levy payment,” it said.
“The government will apply a 10 per cent top-up to monthly funds entering apprenticeship levy payers’ digital accounts in England from April 2017.”
The Treasury also announced plans for more work coaches in Birmingham.
“This budget announces the extension of additional work coaches in Birmingham for the next financial year,” it said.
“These additional work coaches work with businesses to match individuals with apprenticeships, training opportunities and skilled jobs.
“There are currently 100 additional work coaches in Birmingham who work with businesses to match workers with apprenticeships, training opportunities and skilled jobs. This scheme will continue until 2017.”
It comes after FE Week exclusively revealed this morning that extra money looks set to be made available for 16 to 18 apprenticeships following today’s budget.