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
  • 29 October 2026
  • Immigration

UK Immigration shake-up: More flexibility for skilled workers, but at what cost?

The UK Government has outlined further changes to its immigration system, with new measures affecting international graduates, sponsored workers, and businesses employing overseas talent.

art
  • 28 October 2026
  • Privacy and Data Protection

Remote working: 5 key data protection risks for employers

Remote working has become more prominent in modern business. While flexible working arrangements can improve productivity and employee wellbeing, they also create new data protection risks. Regardless of the physical location in which work is done, compliance with UK GDPR does not change.

art
  • 27 October 2026
  • Employment

Fire and Rehire update: Key changes delayed

The Government has published two documents giving key updates to the anticipated changes around ‘fire and rehire’ and restricted contractual variations, coming about as a result of the Employment Rights Act 2025 (“ERA 2025”). We now understand that these changes will now be delayed to March, rather than January 2027.

art
  • 26 October 2026
  • Corporate and M&A

Shareholders’ Agreements for Founders and Investors – SHA Series Part 3 of 5

A shareholders’ agreement is arguably one of the most valuable corporate governance agreements (along with articles of association) in any private UK company with more than one shareholder.

art
  • 23 October 2026
  • Litigation and dispute resolution

Section 172 Companies Act 2006: Key lessons from Saxon Woods v Costa

The Supreme Court’s decision in Saxon Woods v Costa UKSC 21 clarifies directors’ duties under Section 172 Companies Act 2006, confirming that good faith requires both honest belief and appropriate conduct.

art
  • 19 October 2026
  • Immigration

Right to Work Checks: Are UK businesses becoming immigration enforcement officers?

The UK’s Right to Work regime has undergone a significant expansion, with changes taking effect from 1 October 2026.