If your business has a wage bill over £3 million then you’ll have been paying the apprenticeship levy since April 2017. However, there is a growing number of businesses that are not utilising their levy budget. If not used, unspent funds in employer’s levy accounts are lost – meaning employers are losing the opportunity to upskill staff and recruit apprentices – is it an opportunity that you can afford to lose?

The uptake of the apprenticeship levy has been slow, and as a result the number of apprenticeship starts. With a 3m starts target set by the Government back in 2015, in April 2019, the national picture was over 548,000 starts below target according to FE Week.

New initiatives in April have helped to make the recruitment and use of apprenticeship training easier. The co-investment percentage was reduced from 10% to 5% making it more cost effective to train and develop using apprenticeships.

Apprenticeship funding changes
The amount of levy funding that can be transferred to supply chains from levy-payers was also changed, increasing from 10% to 25% helping SMEs within large supply chains to benefit from unspent levy budgets in larger companies.

Levy-payers who don't spend or transfer their funds within 24 months will have the expired funds removed from their accounts. There are great examples of companies utilising their levy budgets to maximise training and development. For example, Stoke-based Solidor, have recruited over 20 apprentices in the past five years.

Apprenticeships are great for business. They increase productivity, bring fresh ideas and help develop new skills, motivate and retain staff.

If you are thinking about recruiting an apprentice or upskilling your current workforce, book an apprenticeship levy consultation with a member of our team.

Apprenticeship Levy Consultation

Even Lead In Image

PLAN YOUR FUTURE, ATTEND OUR NEXT OPEN DAY

Book to attend our next open event and discover why we are the place to go for apprenticeships

RELATED ARTICLES

1 Min

Apprenticeship Levy Case Study: Klarius

Clearing up the apprenticeship levy confusion.

2 Mins

Discovering future apprenticeship talent with ...

With the introduction of the apprenticeship levy, those who choose to invest in talent including apprentices and existing staff are seeing the ...

2 Mins

Apprenticeship levy funding changes: what ...

From April 1, 2019, the maximum amount of apprenticeship levy which you can pass to your supply chain is set to increase from 10% to 25%. But ...

2 Mins

The route to success through apprenticeships at ...

Apprenticeships are becoming a popular route into employment for school leavers and more experienced learners alike. PM Training in ...

1 Min

Apprenticeship changes for SMEs from January 2020

If you’re an SME looking to boost your business, you’ll soon have much more control over how you spend your training budget. As an SME, you ...

3 Mins

Everything You Need to Know About Apprenticeships ...

Apprenticeships have become increasingly popular across a variety of different industries. More people are choosing to forego traditional ...