Inside Your Ed podcast

Is it time to replace the apprenticeship levy with a 'Growth and Skills Levy'?

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On April 6th 2023, the apprenticeship levy celebrates its sixth birthday. The question now is whether the levy will get the chance to celebrate many more birthdays in future. 

The levy is essentially a payroll tax of 0.5 per cent for any UK employer with an annual wage bill of over £3 million, with the total pot of levy contributions funding the entire apprenticeship system for both large and small organisations.  

Last year, the Labour Party decided that it was time to change course and proposed replacing the current apprenticeship levy with a Growth and Skills Levy. 

So what do we know about the Growth and Skills Levy? How might employers react to a new levy system? And when the current levy has become a major source of frustration for many employers, what would a Growth and Skills Levy have to do to avoid the same fate? 

Our guests today are Kate Shoesmith, Deputy CEO at the Recruitment & Employment Confederation, or REC, and Kevin Rowan, the Head of Organisation, Services and Learning at the TUC, the umbrella body for almost 50 trade unions.

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