BMF issues briefing paper on Apprenticeships Levy

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BMF issues briefing paper on Apprenticeships Levy

The Builders Merchants’ Federation (BMF) has issued a briefing paper to all its members to outline changes that the UK Government is making to the way apprenticeships are structured and financed.

The Apprenticeships’ Levy will apply to businesses with a paybill of more than £3 million a year. In the briefing, the BMF alerts its members that medium-sized businesses employing between 100-200 staff will become liable to pay it when it comes into force on 6 April 2017.

"The BMF did not ask for a compulsory levy to be imposed on our members. There is a case for greater employer participation in the training and funding of apprentices - but I am not convinced these proposals are the right ones”, said BMF Managing Director John Newcomb.

“Trying to meet a fixed date of 6 April 2017 is risky. Getting this right must take precedence over forcing the pace of change. No-one wants to re-visit this in a year or two to put things right. The absence of clarity on how it will operate in Scotland, Wales & Northern Ireland is concerning”.

"The Apprenticeships’ Levy is part of a complex but concerted move by the UK Government to boost productivity & employment and improve vocational training & skills. Changes to Corporation Tax and National Insurance Contributions are being made to incentivise employers to invest more", Mr Newcomb added.

The BMF has also announced another briefing direct to its members - focused on arrangements affecting employers not liable to pay the Levy, but who do currently take on apprentices, or plan to in the future.


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