The Government has announced the introduction of the Apprenticeship levy. The levy will be on larger employers and will be introduced in April 2017. It will be set at a rate of 0.5% of an employers’ salary bill. Each employer will receive an allowance of £15,000 to offset against their levy payment. This means that the levy will only be paid on any salary bill in excess of £3 million and that less than 2% of UK employers will pay it. The levy will be paid through Pay As You Earn. By 2019-20, the levy is predicted to raise £3 billion in the UK.