The RMI has welcomed the Government’s plans for a 0.5% apprenticeship level in April 2017 to raise funds for 3 million apprenticeships by 2020.
Under the new plans revealed in the Autumn Statement, businesses with a wage bill over £3 million will be charged a 0.5% levy in order to help pay fund 3 million apprenticeships, raising around £3 billion by 2020.
Due to the £3m wage bill cut off, the Government believes only the top 2% of businesses in the UK will end up having to pay.
RMI director Stuart James, said Government money alone could not have funded the amount necessary to boost training.
He said: “The RMI supports the levy in the context that apprentices will now have the right levels of funding to ensure quality training and development to grow into highly skilled technicians.
“Government money alone could not have funded this. We still need further answers for SME’s, as they make up the vast majority of the UK’s car repair businesses.”
Steve Nash, Institute of the Motor Industry, chief executive, also welcomed the levy, although he did say more detail needs to be heard so small and medium sized businesses can take advantage of the funding in 2017.