Search

How can we help?

Icon

Does government face ‘steep learning curve’ on apprenticeships?

As reported previously, in April this year the apprenticeship levy came into force. This introduced a 0.5% levy on employers with payrolls over £3million. The aim is to raise £3bn annually for four years to fund apprenticeship places.

However recently announced Department of Education figures have put the target of 3 million apprenticeships by 2020 in doubt. Instead of an increase in the number of apprenticeships, the number starting an apprenticeship in the summer of 2017 was only 48,000, less than half the 117,000 who started in 2016.

Critics have blamed poor implementation of the plan with employers struggling to access funding and understand the complex rules. Only 2% of firms are large enough to be liable to pay the levy but smaller firms that employ between 50 and 200 staff partaking in the scheme have been put off by the new obligation to release their apprentices for one day a week off-site training and to contribute 10% of these training costs.

One thing’s for sure, if the figures don’t increase soon the Government will need to reconsider how it will meet its aim of 3 million apprenticeship starts in England by 2020.

The aim is to raise £3bn annually for four years to fund apprenticeship places.

Critics have blamed poor implementation of the plan with employers struggling to access funding and understand the complex rules. Only 2% of firms are large enough to be liable to pay the levy but smaller firms that employ between 50 and 200 staff partaking in the scheme have been put off by the new obligation to release their apprentices for one day a week off-site training and to contribute 10% of these training costs.

One thing’s for sure, if the figures don’t increase soon the Government will need to reconsider how it will meet its aim of 3 million apprenticeship starts in England by 2020.

Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

Author profile

About this article

Read, listen and watch our latest insights

art
  • 21 January 2026
  • Privacy and Data Protection

FAQs – Data Subject Access Requests

Any individual who may be identified from any form of document, whether directly or indirectly, is a data subject.

art
  • 20 January 2026
  • Corporate and M&A

Positioning Your Business for Growth and Exit in 2026

2025 proved another challenging year for SMEs in the UK, with regulatory reform for Companies, increased taxes and operating costs and geopolitical pressure making for a harsh trading environment, Yet, despite the gloomy economic outlook, dealmaking in the region remained robust.

Pub
  • 20 January 2026
  • Immigration

UK Immigration: What to expect in 2026 for employers

Join our UK immigration specialists, Ruth Karimatsenga and Monica Mastropasqua, for an on-demand webinar as they discuss the key updates and their impact on your business in 2026.

Pub
  • 15 January 2026
  • Corporate and M&A

Quarterly Insights: Key Corporate & Commercial Topics – Q1 2026

Join Stuart Mullins and Jonathan Hayes as they explore the most topical issues and key developments our team has examined over the past three months. In Episode 1, they discuss Family Investment Companies, Legal Due Diligence, and Directors’ Duties.

Pub
  • 08 January 2026
  • Privacy and Data Protection

Data Protection Audits: Launch Event

Join us for a breakfast networking session on Thursday 26th February 2026 as we officially launch our Data Protection Audit services.

art
  • 08 January 2026
  • Privacy and Data Protection

Data Protection – what’s happened in 2025?

2025 has been a lively year for the data protection sphere, with the main talking point coming from the UK’s data reform Bill finally receiving Royal Assent on 19 June 2025.