The new Regulations requiring companies with a pay bill of more than £3 million to pay an apprenticeship levy were brought into force on 6 April 2017. The levy will be charged at a rate of 0.5% of the company's annual pay bill, payable monthly via PAYE. However, employers will receive an annual allowance of £15,000 to offset against their levy liability, to be spent on government approved apprenticeship training programmes.
Employers in England who pay the levy will be able to access funding through a digital service (DAS). The new system of funding is expected to operate from 1 May 2017. Employers that do not qualify to pay the levy will also be able to access funding for apprenticeships.
These revised limits apply to all employees whose effective date of termination is on or after 6 April 2017. Where the effective date of termination fell prior to 6 April 2017, the previous limits will apply.
From 1 April 2017, the national minimum wage has increased from £7.20 to £7.50 for workers aged 25 and over. The rates within the other age bands have also increased as follows:
The weekly rate of statutory maternity, paternity, adoption and shared parental pay has increased to £140.98 for pay weeks commencing on or after 2 April 2017. In addition, the weekly rate of statutory sick pay has increased to £89.35 from 6 April 2017.