A third of UK businesses are confused or unaware of the financial implications of the new apprenticeship levy due to be implemented in less than two months time, according to new research.
Across the country, just one in three businesses surveyed said they were fully aware of the levy, which will require all companies with a payroll totalling £3 million or more to invest 0.5 percent into the government’s apprenticeship scheme.
Coming into effect in April, it is hoped that the new charge will help the government reach its target of three million apprentices by 2020.
But new research published today by City & Guilds reveals that only 31 percent of respondents are planning to increase their number of apprentices, with 15 percent claiming that they would be forced to cut other recruitment schemes in order to offset the costs of the levy.
Of the 500 senior business leaders surveyed, nearly a quarter, or 23 percent, were unaware of the changes to the apprenticeship system, whilst 28 percent said they did not know whether they would be required to contribute when the levy commences in April.