Damian Hinds, exchequer secretary to the Treasury, has announced a point of contact for charities in the Department for Business, Innovation and Skills to help with the introduction of the apprenticeship levy.

The government announced plans in the last Spending Review and Autumn Statement to introduce an apprenticeship levy from April 2017.

The levy will require employers with a wage bill of more than £3m to pay a levy of 0.5 per cent through Pay As You Earn. The money raised will be used to fund apprenticeships.

Charities have expressed concerns that it will effectively be a tax on the sector, because they do not offer enough apprenticeships.

Hind told delegates at the Charity Tax Group’s annual conference: “I urge you to continue to working with us on this to help make the levy a success for the charity sector, as for other sectors.

“To help with that we’ve arranged a point of contact for you in the Department of Business Innovation and Skills to ensure that the voice of charities is heard as the work on the levy continues.”

He went on to say that “upskilling the British workforce is in the interest of all of us, so we all have a part to play”.

Employers may use the money they contribute through the levy to employ apprentices in their own organisation. If they choose not to do so the money will be distributed elsewhere.

The levy is expected to raise £3bn by 2019/20. However, it has been estimated that around 1,200 charities in the UK will be affected at a cost of £70m.

Hind also told delegates that he is proposing an amendment to the finance bill, to allow them to split the levy between them.

He said: “I’m pleased to confirm that the government has listened to your representations, and will be proposing an amendment to the finance bill, so that connected charities will be able to split the levy between them. This will allow connected charities to optimise the allowance up to the full £15,000.