World News

Industry news and insights from Europe and around the World

UK News

Latest news and developments in the United Kingdom

Products

Keep up-to-date with the latest new products and technology

Features

General articles, applications and industry analysis

Union exposes apprentice levy “scam”

UK: The UK’s largest trade union claims that some large companies may be profiting by deducting the apprentice levy from workers’ wages.

The Unite union claims to have received a growing number of payslips from workers in different sectors including construction, which show that employment agencies and umbrella companies are deducting the apprentice levy from workers’ pay. The apprentice levy was introduced last year and companies with a payroll of over £3m are expected to pay 0.5% of the payroll costs to the HMRC, this money is then earmarked for apprentice training.

The union, has called for a crackdown on what it describes as a “loophole” being operated by “unscrupulous” companies, which could result in these organisations generating a profit from these “dubious” payments.

Although not illegal, provided the worker has agreed to the deduction, Unite describes this action as “highly immoral”.  It argues that if an agency or umbrella company charges their entire workforce the apprentice levy they will in fact be making an additional profit, as they don’t pay the levy on their first £3m of payroll.

“The most unscrupulous umbrella companies and agencies are deliberately undermining the apprentice levy by forcing workers to pay something which is supposed to be their responsibility,” said Unite assistant general secretary Gail Cartmail.

“In a double whammy not only are these companies offsetting what they should be paying they are potentially making a profit and lining their pockets through making deductions on the levy.

“The government must immediately look at this scam and introduce measures to prevent workers from being charged in this way.

“If the government fails to act, support and confidence in the apprenticeship levy will be further undermined.”

Latest News

19th April 2024

Carrier efficiency boost for CO2 racks

GERMANY: Carrier Commercial Refrigeration’s new CO2 efficiency booster skid is said to offer an energy efficient upgrade for refrigeration racks.
19th April 2024

Midea to acquire Arbonia HVAC businesses

SWITZERLAND: Midea has agreed the €760m purchase of Swiss group Arbonia’s Climate Division, which includes HVAC businesses Sabiana, Termovent and Tecna.
19th April 2024

Castel acquires majority stake in Dieci Electric

ITALY: Refrigeration and air conditioning components supplier Castel has announced the acquisition of a majority stake in Dieci Electric, a manufacturer of industrial RAC system electrical panels.
18th April 2024

Fan maker to expand US tooling centre

USA: German fan manufacturer EBM‑Papst is to add a 1,350m2 extension to its US manufacturing and engineering facility in Farmington, Connecticut.
18th April 2024

Artus adds larger hybrid fan coil

UK: Artus Air has added a larger model to its range of hybrid fan coil units.
18th April 2024

Thai ammonia leak sends 155 to hospital

THAILAND: An ammonia leak at an ice factory in Thailand’s Chonburi Province hospitalised more than 150 people of which nine are said to be in a serious condition.