We are currently witnessing a massive change in the apprenticeship landscape. After a period of decline from the early 1990s to the mid-2000s, apprenticeships are now enjoying a period of resurgence. Public awareness of apprenticeships is slowly improving, and they have been supported by significant policy reforms to make them more aligned to the skills needs of the economy.
The apprenticeship levy is the most visible of these reforms. The levy is a payroll tax on large employers. Employers with a pay bill of over £3m are taxed at a rate of 0.5 per cent of their total payroll costs. Funds are then deposited into a digital account through which employers can purchase apprenticeship training.
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