The levy, which was announced in the summer budget, aims to ensure all large employers contribute towards the Government’s target of 3 million additional apprenticeship starts by 2020 to support the development of the UK’s skills base and help to drive long-term productivity.
It is proposed that the levy will be calculated on the basis of employee earnings and for employers to pay the levy through their PAYE return to HMRC. Further details on the rate and scope of the levy will be announced as part of the Spending Review in the autumn.
The consultation sought views on paying the levy, how the levy should work for employers who operate across the UK; how to make sure that employers are paying the levy have the opportunity to get more out than they put in and how best to give control to employers.
In its response the NFU has outlined that it does not support the measure to introduce a levy on large employers and that a voluntary approach would be a more appropriate response. If a levy was introduced the NFU response makes it clear that this needs to be proportionate, targeted, simple and fair and must exempt micro and small businesses.
The full NFU response can be read here.