Don't lose your Apprenticeship Levy

Posted: Monday, 26 July 2021 @ 11:18

There has been a lot of confusion about what the Apprenticeship Levy actually is and how it will benefit businesses. We’ve discovered that a number of organisations have yet to implement an Apprenticeship programme within their workforce, causing uncertainty on the new change and lack of knowledge around the topic, whilst others seem to be relying on making a ‘one-off’ payment into their Levy funds at a later date. Interestingly employers are using just 14% of their Apprenticeship levy in the first 18 months.

The Apprenticeship Levy is almost seen as a ‘direct debit’ payment each month, which is calculated on the company’s annual wage bill and put into the digital levy fund. This money can only be used for Apprenticeship frameworks or Standards, whether that’s employing a 16-24 year old as an Apprentice or for upskilling existing staff.

It is said that “whilst only around a third of employers understand the Apprenticeship Levy system well, very few will actually reclaim their full Levy entitlement”.

Since the policy started back in April 2017, less than one in five companies will use Levy contributions to take on more Apprentices. If you’re an organisation who hasn’t spent any or only a percentage of your Levy funds and wondering what happens now, here’s some key facts about Levy contributions:

  • Did you know that levy payments will expire after 24 months from when they have entered the digital account?
  • Unspent funds from the levy pot are used in ways that include funding Apprenticeships for small, non-levy paying employers, for English and maths Qualifications, and for extra support for Apprentices who are care learners or have special needs.
  • If you employ a 16-18 year old Apprentice, you will be eligible to receive an additional £1000 of Government funding per Apprentice, which will be paid to you in two instalments.
  • You can currently transfer up to 10% of your Levy to other employers. This is set to rise to 25% in April 2019.

Click here  to download our Levy Transfer Factsheet

Working with Intec, we will ensure you make the most out of this opportunity; investing this money into areas where your business can develop the skills of your existing workforce and build an exciting workforce for your future. If you haven’t spent your Levy just yet then not to worry; now is the perfect time to start planning the outcomes into 2019.

Download our Levy Factsheet here.

Call Intec Business Colleges on 01788 575090 to help you get your Levy plans wrapped up for next year.