The levy was announced in the budget earlier this year by Chancellor George Osborne, who said, 'Our weak productivity shows that we don’t train enough'.
The move comes after the Government plans to enshrine its commitment to create 3 million new apprenticeships by the end of 2020 in law. Around 50% of large employers are engaged in apprenticeships.
The Government has said levy-funded apprenticeship training is common in other countries, and the move has prompted cautious support from some business leaders, with City & Guilds Group chief executive Chris Jones saying while it was a sustainable long term solution to creating more apprenticeships, it must not impose additional bureaucracy on businesses. However the CBI has described the policy as a 'blunt tool'.
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