The Apprenticeship Levy is a government scheme that was introduced in 2017, with the objective to encourage more businesses to get behind the ideology of apprenticeships at both entry-level and for current employees. If your business meets the required criteria, you will make a monthly contribution into a secure account, which can be used for employee training.
Following a recent report which states that a vast proportion of these funds are currently sitting idle, we investigated how you could access your Levy funds for training, why you should pay the Apprenticeship Levy and how businesses like yours could utilise its full potential.
How to use Levy for training
According to a recent article completed by RNS Chartered Accountants and Business Advisers, £3billion of Apprenticeship Levy funding currently lies untouched, meaning that only a mere 14% of companies are utilising this funding to its full potential. The article went on to suggest that some businesses find the system confusing to navigate, while some just find it unhelpful in general. Solvo Vir offers a Levy consultancy service which helps you to understand the process and cut out the admin.
Once you have identified whether your company qualifies for the Apprenticeship Levy, you must pay into the Levy pot. Small businesses are everywhere, making up 60% of the businesses in the UK. If yours happens to be smaller than usual and does not surpass the £3m annual pay bill, you are not eligible for the Levy payment. You will instead receive 95% of funding from the government, leaving you with only 5% to make up.
Benefits of Levy funding for employers
There are a huge number of benefits of Levy funding for employers, and the most important has to be that your staff will feel reassured by your investment into their professional development. You will be able to reward staff for their hard work by offering them the opportunity to develop their skills and knowledge, gain a recognised qualification and go further within your business, become an expert and possibly progress onto a senior leadership or management role.
Utilising the Apprenticeship Levy would allow you, as an employer, to focus on the skill-gaps within your team. This would in turn mean a more professional and equipped workforce, confident in everything they do.
Entry-level employees may have never had hands-on work experience before embarking on their new career, and could therefore benefit from further training to develop their skillset. There may be a higher position that a member of staff would like to move into, and another benefit of Levy funding for employers could be offering your staff the security to reach for what they truly want.
You can also use your Levy to introduce new talent into the business, create new roles for departments where there may be gaps or support required. One of the fundamental aspects of Apprenticeships is about nurturing and developing individuals into becoming experts in their chosen field, through influencing behaviours and giving them hands on experience.
If you would like to know more about how to utilise the full potential of the Apprenticeship Levy, give us a call on 0330 0539140 or alternatively email us at .