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
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”.
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:
you know that levy payments will expire after 24 months from when they have
entered the digital account?
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.
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.
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.
Levy Factsheet here.
Business Colleges on 01788 575090 to help you get your Levy plans wrapped up
for next year.