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Develop a new programme to allow larger firms to place apprentices in their supply chains

Last updated: 10:24am 9 January 2019

…and work with the business community to develop a new programme to allow larger firms to place apprentices in their supply chains.

Conservative Party Manifesto 2017, p.53

Our verdict

Apprenticeships have undergone wholesale change recently with the introduction of the apprenticeship levy in April 2017. The levy is a new tax that the government has put in place to finance apprenticeships. All businesses and non-profit companies will need to pay 0.5% of any amount of their wage bill that is over £3 million. In return, these organisations will have access to an online apprenticeship service  account, where they can access funds to use for apprenticeship training. If these funds are not used within 24 months, they expire.

This policy promises to develop a way for larger firms to place apprentices in businesses that contribute to their production and distribution processes.

The government has established a scheme for transferring apprenticeship funds from one organisation to another. Take-up of the scheme has been low, and in a party conference speech in October 2018, the Chancellor announced he was responding to concerns from employers by increasing the amount that may be transferred.

With very low take-up and the scheme still developing, we’re marking this as ‘in progress’. When we have evidence of more large firms placing apprentices in their supply chain as a result of the transfer mechanism, we will be able to move this status to ‘done’. Follow this policy for updates!

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