MAXIMISING YOUR APPRENTICESHIP LEVY
Since the launch of the Apprenticeship Levy in April 2017, only 14% of the levy funds have been spent. From April 2019, any funds that have not been used started to expire, so it is crucial that you act now to receive maximum return on your investment.
Here are some quick tips to help you increase the effectiveness of your levy.
1. Transfer 25% of your funds to another organisation
Did you know from April 2019, levy paying employers with unused or surplus funds in their levy account can donate up to 25% to other organisations to pay for their apprenticeship training and assessment? You can use the transferred funds to support smaller employers in your supply chain to recruit apprentices, or to assist a charity or local business.
It’s your choice who to support, just as long as the funding is spent on apprenticeships. The maximum transfer will be 25% of your annual funds and these funds will be used to pay for the training and assessment of the apprenticeships agreed with the receiving employer, and will be paid monthly for the duration of the apprenticeship.
2. Switch existing training programmes with apprenticeships
Look at your existing training programmes and budgets and how these compare with apprenticeship standards. You will find that most can be directly replaced with the new standards while others can be enhanced by apprenticeships.
Apprenticeships now cover more than 170 industries and 1500 job roles from childcare to cyber security. The new design of apprenticeship standards mean that they range from entry Level 2 courses right up to Level 7, which is equivalent to a Master’s degree.
Are any of your employees doing any professional qualifications? Some apprenticeship standards include popular vendor or professional qualifications so it can be cost effective and financially viable to do an apprenticeship rather than paying commercial training costs.
3. Ensure your business has the skills it needs now and in the future
As competition for talent intensifies, your number one priority is to look at the skills and knowledge gaps in your business, identify your future talent needs then consider how apprenticeships can be used to address these needs.
Apprenticeships enable you to future proof your business by developing and growing a more qualified workforce with the skills relevant to your sector and programmes tailored to the specific needs of your organisation.
You can use your levy funds to bring in new recruits or to upskill (or reskill) existing employees. Everyone is entitled to start an apprenticeship at any time, no matter what their age, background, seniority or job role.
An end-to-end levy management service
If you’re an employer eligible for the Apprenticeship Levy, you must pay the levy irrespective of whether you employ an apprentice or not. And while it is not mandatory to spend your levy funds, your business really will be losing out if you don’t.
GP Strategies offers an end-to-end levy management service for everything you need to effectively understand and manage your Apprenticeship Levy, and to support you to design and deliver an effective apprenticeship scheme. For more details contact us or call us on 0330 1000 610.