Apprenticeship levy will apply to larger academy chains

The Government has confirmed that large academy chains, exam boards and other education sector charities will have to pay the new apprenticeship levy.

Schools Week was told by the Department for Business, Innovation and Skills that charities which meet the size threshold for the tax will need to pay, but will also be eligible for funding to hire their own apprentices.

Chancellor George Osborne introduced plans for the levy in his July budget.

The proposals mean organisations of a certain size will have to pay a percentage of their payroll costs to the Government to support the creation of apprenticeships. They are part of a drive to get 3 million learners to begin an apprenticeship by 2020.

The idea is that organisations which pay the tax and then hire apprentices will get a greater return from the system than they put in.

But organisations are still waiting to hear what the employee number threshold for paying will be, and how much they will have to pay.

The Confederation of British Industry has predicted the tax will be “around 0.5 per cent of payroll” and “is likely to include all businesses with 250 employees or more”.

If these predictions are correct, the levy will affect certain large academy chains and sector organisations with charitable status, such as exam boards.

A department spokesperson told Schools Week: “A larger employer would be required to pay the levy, and would have access to the fund, so this would include charities.

“But note the threshold for the definition of a larger employer has not been set. This will be confirmed once the consultation closes.”

In other news, a think tank has suggested that schools should be fined for each pupil failing to achieve a C grade in maths or English.

A report released by Policy Exchange — the think tank founded by Michael Gove — calls for a “resit levy” to be imposed on schools.

Under the plans, schools would be required to “cough up” for pupils who do not get a C in the two subjects. The money would go directly to further education colleges that are helping pupils pass their resits.