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Apprentice Levy could limit youth training, says work charity

The Learning and Work Institute said that three quarters of apprenticeship providers that worked with small businesses had reported that there was insufficient funding to meet demand, “with many being forced to reduce or cease recruitment as a result”.

The apprenticeship levy, which was supposed to increase vocational training, is having the unintended consequence of reducing the amount of support available to smaller companies, according to research from an employment and skills charity.

The levy, which was introduced in April 2017, requires businesses with an annual wage bill of £3 million or more to pay 0.5 per cent of their payroll costs into a training fund. They can use the cash for qualifying training schemes.

The levy will raise almost £3 billion this year. Any funds that go unspent by levy-paying employers are used to help to cover the cost of apprenticeship training at small businesses.