Autumn Statement: Britain's big business faces apprenticeship levy

Big businesses in the UK will have to pay an apprenticeship levy at a rate of 0.5% of their total wages bill, Chancellor George Osborne has announced.

It will help to double the spending on apprenticeships by 2020 and will raise £3 billion in the UK.

The levy which will come into effect in April 2017, will help to fund 3 million apprentices.

Each employer will receive an allowance of £15,000 to offset against their levy payment.

This means that the levy will only be charged on any pay bill in excess of £3 million.

The government will also establish a new employer-led body to set apprenticeship standards and ensure quality.

It will be independent of government and will also advise on the level of levy funding each apprenticeship should receive.

“Apprenticeships are now the cornerstone of the skills system” the government said.