Small firms will not pay for training apprentices

Small business campaigners won a key concession today as details of the Government’s new apprenticeship levy showed most smaller firms will pay nothing towards training.

The levy, which comes into force next year, applies to companies with annual pay bills of above £3 million.

While 98% of companies in the UK would be excluded from the levy, fears remained over small businesses being asked to contribute to training costs.

But the Government confirmed today that employers who take on 16-to-18-year-olds, around 70% of all apprentices, would pay nothing towards training costs.

Apprentices aged 19 or over will have 90% of costs funded.

Mike Cherry, national chairman of the Federation of Small Businesses, said: “This announcement sends a clear signal that ministers are listening to our members’ concerns.

“Smaller businesses are taking on more apprentices than ever before.”