Government to fully fund small business apprenticeships
As a result UKH has welcomed the changes as the Government claimed it will allow 20,000 more apprentices to be taken on
The Government has announced that it is set to fully fund apprenticeships in small businesses from 1 April by paying the full cost of training for anyone up to the age of 21.
Furthermore, large employers who pay the apprenticeship levy will now be able to transfer half of their funds to smaller businesses taking on apprentices rather than the current 25%.
This news comes after the Government announced £60m worth of funding for apprenticeships in the year ahead, taking the total number up to £2.7bn.
It also comes after UKHospitality lobbied for the government to allow for more freedom in how businesses use the apprenticeship levy in last year’s Spring Budget.
As a result UKH has welcomed the changes as the Government claimed it will allow 20,000 more apprentices to be taken on.
Kate Nicholls, UKH CEO, said: “The people who work in hospitality are the beating heart of our sector and are the reason we can provide quality food, drink, experiences and service. Investing in people is so important and it’s one of the reasons we see so many people progress through the sector, going from bar to board in a matter of years.
“The changes to apprenticeships announced by the Prime Minister today are very positive. Removing the fee for non-levy payers and expanding the definition of SMEs will all benefit smaller businesses. Increasing the levy transfer amount to 50% will free up more funds to be used for training, rather than being left unused.”
She added: “Overall, there is much to be pleased about, and these changes will benefit both businesses and employees. However, the reality is that the entire apprenticeship system is structurally broken. The levy itself needs reform to allow businesses more flexibility with funding and I would urge the Government to make that a central pillar of its skills agenda.”
