From 6 April 2017 there will be an Apprenticeship Levy for any business whose payroll exceeds three million pounds a year. The levy means these companies will have to put 0.5% of their wage bill into the levy via PAYE with the aim that the levy will create millions of new apprenticeships by 2020. However, the new apprenticeships created from the levy will also be available to smaller businesses who did not pay the levy.
Furthermore, large public sector employers with over 250 employees will have an apprenticeship target that ensures at least 2.3% of their workforce (6 employees) are currently apprentices. These apprenticeships must be statutory apprenticeships and not other schemes given the apprenticeship title or common law schemes. This is part of an ongoing government initiative to encourage youth employment via apprenticeships.