The Apprenticeship Levy

Does your organisation have a pay bill more than £3 million per annum? If so, are you getting the benefits?

The apprenticeship levy can help businesses offer essential training and increase employee engagement. The government apprenticeship levy is a tax paid by employers. It is then stored in a fund which can be accessed to help pay for apprenticeship training costs.

Apprenticeships are an excellent way to fund the training of new staff. A new apprentice learns from you on the job so you know they are building the kind of skills you need. It is also an excellent way to enhance skills of current staff within your organisation and support their career progression. This can lead to creating a motivated and qualified workforce. Apprenticeships can also help develop the skills of your existing workforce in areas which you would like to develop your business and make your organisation futureproof. There are four different levels of apprenticeships to meet your needs:

• Intermediate: Level 2

• Advanced: Level 3

• Higher: Level 4 or 5

• Degree: Level 6 or 7

The Apprenticeship Levy funds apprenticeship training for all employers. What is not spent is used to support apprentices completing their training and to pay small employers’ apprenticeship training costs. Large employers (250 employees or more) can transfer up to 25% of their levy fund to other employers.  The levy is charged at 0.5% of an employer’s total payroll (apprenticeship levy allowance) and is collected monthly through PAYE.

If your organisation pays other training levy arrangements for industry qualifications, such as the Construction Industry Training Board Levy, you will still need to pay the Apprenticeship Levy.

The Government provides guidance on paying the Apprenticeship Levy with details on how to work it out and how to report your payments.

Find out more about government funding for apprenticeships.

Apprenticeships - Addressing skills challenges & growing businesses!

Alex Miles, Managing Director at Yorkshire Learning Providers  says “The UK is in a skills crisis that is costing businesses millions annually. Apprenticeships really can help overcome the skills challenges now and into the future. 

 With 80% of the 2030 workforce already in the workplace, upskilling & reskilling is imperative to future growth and improved productivity, and employers need to know their training and development needs now, in 2 years and in 5 years.  Constantly reviewing these and making it a strategic objective and priority for board or senior management to uphold and achieve.

 Apprenticeships are not just a great programme for emerging managers and future talent pipelines, but they truly change lives, broaden opportunities and bring a multitude of business benefits for those engaged. “

 Want support filling your apprenticeship vacancies? Careermap Media Group can help!