The Freight Transport Association (FTA) says the Apprenticeship Levy should be paused throughout the COVID-19 outbreak to prevent businesses paying tax towards a funding programme they are unable to draw down from.

With logistics businesses unable to recruit new apprentices due to social distancing rules, and with no new training programmes getting under way at this time, the business group is urging government to review the continued use of the Levy during the pandemic.

Christopher Snelling, Head of UK Policy at FTA said, “As the business organisation representing the logistics sector, FTA is urging government to pause the Apprenticeship Levy programme. Due to social distancing rules and restrictions on training, most businesses are now unable to recruit new apprentices. FTA is urging government to rethink its approach as a matter of urgency.” 

The Apprenticeship Levy is a tax on employers that is used to fund apprenticeship training. It is payable by all employers with an annual pay bill of more than £3 million at a rate of 0.5% of their total pay bill. 

Photo: Christopher Snelling