BUSINESSES are “in the dark” about the new apprenticeship levy with many claiming they have not even heard of it, a new survey revealed yesterday.
A study by the British Chambers of Commerce (BCC) showed that two out of five firms either did not understand or did not know about the levy, which comes into force next April.
From next April all employers in Britain with an annual pay bill over £3 million will have to contribute to the levy at a rate of 0.5 per cent of their annual pay bill. This will raise an estimated £3 billion towards creating more apprenticeships.
The survey of 1,600 business leaders also found that most believed the new levy felt more like a tax. The BCC said its survey showed that the government had so far failed to adequately communicate its apprenticeship funding policy.
Ucatt acting general secretary Brian Rye said: “The problems with the proposed apprenticeship levy underlines the complete failure of the government’s policies in training fully skilled apprentices.
“All the evidence shows that in the trades where apprentices are needed the most, training is at its lowest.”