The Government suggests that ‘employers will get back more than they put in’ but that remains to be seen. 0.5% of a paybill may not sound a lot, but for organisations who are already dealing with the National Living Wage it means yet more cost.
Commenting on the new measures announced by George Osborne on the Apprenticeship Levy, Ingrid Waterfield, Director in KPMG’s P3 team, said:
“The Government suggests that ‘employers will get back more than they put in’ but that remains to be seen. 0.5% of a paybill may not sound a lot, but for organisations who are already dealing with the National Living Wage it means yet more cost. Only 2% of employers will be ‘levied’ but that’s still a large number of businesses across the UK. Will this lead to pressure to keep paybills lower? Or will it lead to less full time jobs for the apprenticeships to fill once they have finished training?
“It is good news that an employer-led body will set apprenticeship standards and ensure quality but this body will need to prove its value as opposed to just adding to the bureaucracy and cost of the current approach.”
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