Livingstone's Director, James Local on what to expect from the apprenticeship levy

As part of the Government’s drive to create three million apprenticeships and double the size of the apprenticeship market to £2.5billion by 2020, an apprentice levy has been introduced.

The Government had been planning to cut funding for 16-18 year old training by up to 30% as part of the new apprenticeship levy regime, but heeded warnings from businesses and campaigners and changed course. The new system includes ear-marking £60million to help those in the most disadvantaged areas in the UK.

The levy will be paid by all employers with a wage bill in excess of £3million from April 2017. The top two per cent of employers will contribute 0.5% of wages to the levy.

Speaking to James Local, Director at Livingstone, he believes that results, value for money and quality will be chief concerns due to the use of providers. “In this context, providers with a track record of delivery, which specialise in employer-centric, high quality courses are likely to benefit enormously,” he explains. “Those with rigid cost bases or which deliver less sought-after relevant apprenticeships may suffer.