The levy, which applies to employers with a paybill of more than £3m, is expected to apply to nursery chains with around 200 staff or more.
The tax is expected to fund a 3 million increase in apprenticeships across the country, raising £2.6bn, which will then spill over into a system of co-investment for small employers wanting to take apprentices.
The £2.6bn figure is less than the original £3bn treasury projection, with several in the sector citing concerns that there may not be enough money to pay for apprentices in SMEs.
Mark Dawe, CEO of the Association of Employment and Learning Providers, says, ‘Unless the Government guarantees a minimum £1bn in annual funding for the apprenticeships of small businesses over the longer term, we may have only a short window of two years to meet demand for apprenticeships in nurseries before the sector faces a major skills challenge again.’
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