The UK Government has released details of the new apprenticeship levy which is to come into force in spring 2017.

The scheme will require all UK employers who have a pay bill of over £3 million-per-year to contribute 0.5% as a levy.

In addition, large companies will also still have to contribute payments towards the Construction Industry Training Board (CITB).

The apprenticeships will be graded into 15 funding bands, ranging from £1,500 to £27,000.

Steve Radley, Director of Policy at CITB, said while the announcement brings "mixed news", it is good the Government is responding to what the organisation said are the challenges faced by smaller firms.

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"The co-investment rate for non-levy payers is lower than expected, at 10%, with the remaining 90% covered by funds raised by the levy," he said.

"It's also encouraging to see that smaller firms will be exempt from co-investment if they take on a 16-18 year old apprentice. With more than half of all construction apprentices under the age of 19, this is a win for the industry. Companies of all sizes will also appreciate the £1,000 incentive for taking on one of these younger learners.

"But there is still work to do to make sure ensure funding bands reflect the actual costs of training, so that apprenticeships are affordable for companies of all sizes. We will seek further clarification from Government on how the bands have been set, and together with industry, set out the likely impact on construction firms and their ability to take on apprentices.

"We will now work with Government to ensure the Apprenticeship Levy works for the construction industry."

(LM/CD)