Schools to be pushed to breaking point by levy, say education groups
Small council-run schools will have to pay new apprenticeship levy whereas similar non-local authority schools will be exempt.
Small schools whose budgets are already under severe pressure could be pushed beyond breaking point by the introduction of the new apprenticeship levy, school and local government leaders are warning.
The levy, to be introduced in April, requires all businesses – including schools – with a wage bill over £3m a year, to contribute 0.5% of their wage bill to fund new apprenticeships.
But whereas academy or faith schools – who employ their own staff – will be exempt from the levy if their wage bill is under the £3m threshold, small schools with similar wage bills that are run by local authorities will have to pay the levy because staff are employed by the authority and therefore contribute to the overall wage bill of the council.