Correspondence with the Minister responsible for the Apprenticeship Levy

In August 2016, the CTG Chairman wrote to Robert Halfon MP, Minister responsible for the Apprenticeship Levy at the Department for Education.

In the letter, he highlighted concerns over the extent to which the Levy will be able to be utilised by the sector in its current form, and donors’ concerns that their generosity might not end up used for the intended charitable purpose. In the letter CTG called on the Government:

  • to support accredited volunteer training and associated expenses
  • to permit charities to assign to other charities any unused Levy credits
  • to delay the April 2017 implementation date.

In October 2016, the Minister replied to the letter, noting that while he appreciated concerns about funding of apprenticeships, employers would “be given given more control over choosing and paying for apprenticeship training”. He also highlighted the extended guidance that is now available for employers.

This was a very disappointing response, which failed to engage with some specific concerns that were raised. We will continue to push for greater flexibility for charities in spending their Levy contributions, both in terms of extending payments to volunteer training and allocating a greater proportion of unused Levy credits to other charities (currently 10% is permitted).

It now seems very unlikely that the Government will consider a delay in the implementation of the Apprenticeship Levy for charities, so our priority now is to ensure that charities are as prepared as they can be. To this end, we are planning to run a series of practical workshops for members to ensure they understand the new rules and can maximise the benefit of the Levy to their charity.

Full details of the latest guidance on the Apprenticeship Levy can be found here.