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

Pub
  • 16 March 2026
  • Corporate and M&A

Shareholder Disputes: Managing Shareholder Buyouts and Exits – Episode 3

Join Stuart Mullins and Nicky Goringe Larkin for the third and final episode of our Shareholder Disputes series, where we move from prevention to resolution—exploring what happens when a founder’s exit becomes unavoidable.

art
  • 13 March 2026
  • Employment

When Immigration compliance becomes discrimination: The UK’s uncomfortable workplace balance

UK employers today operate under powerful, and some may say conflicting, legal pressures. On one hand, they must prevent illegal working under UK immigration laws.

art
  • 09 March 2026
  • Commercial Real Estate

Commercial Rent Deposits – A brief overview

A rent deposit is money provided by a tenant to its landlord as security for payment of the rent and performance of the tenant’s covenants contained in the lease.

art
  • 03 March 2026
  • Employment

International Women’s Day 2026 – Supporting equality and inclusion for a better, happier workforce

This year, International Women’s Day is inviting everyone to think differently about equality and how it can benefit everyone. The theme this year is ‘Give to Gain’.

art
  • 02 March 2026
  • Employment

10 facts an employer should know about holding personal data

Personal data is any information that can be used to identify an employee.

art
  • 27 February 2026
  • Litigation and dispute resolution

How (not!) to serve a winding up petition on a company using a default address

This case concerned an appeal by DG Resources Ltd (“DG”) on the basis that a winding up petition brought by HMRC (the “Petition”) was invalidly served.