Apprenticeships are an excellent way for businesses to develop skilled employees while offering individuals the chance to earn and learn. Whether it’s upskilling your existing workforce or helping someone begin their career journey with you.
The Apprenticeship Levy in the UK allows employers with an annual wage bill of over £3 million to access funding for apprenticeship training. It provides a great opportunity for growth, talent development, and skills training.
How the Apprenticeship Levy Works
Businesses that pay the Apprenticeship Levy can use the funds to cover the cost of apprenticeship training and assessments. By registering on the Digital Apprenticeship Service, companies can choose from a wide range of apprenticeship programmes suited to their industry and workforce needs.
It’s important to remember that levy funds have an expiry date on them of 24 months. So if it’s not used, it’s just gone! What companies that pay into the levy can do to make sure it doesn’t go to waste is what is called a levy transfer. By transferring unused funds to another business, a levy payer ensures that the money can get used for its intended purpose.
Rather than losing the funds they get redirected to support local businesses or charities that are developing apprenticeships. This helps make sure the funds get used to their fullest.
Partnering with Halifax Opportunities Trust (HOT)
Halifax Opportunities Trust (HOT) helps businesses make the most of the Apprenticeship Levy by offering expert guidance and connecting them with the right apprenticeships. HOT works closely with local employers to ensure they find the right training for their workforce and supports them throughout the apprenticeship journey.
Through the Halifax Opportunities Trust, companies can tap into a wide pool of local talent and create tailored apprenticeship opportunities that align with the specific needs of their business. Whether an organisation is looking to train an existing employee in a new skill or bring in fresh talent to start their career journey, HOT’s apprenticeships offer a powerful tool for growth and development.
Understanding the Apprenticeship Levy
The Apprenticeship Levy was introduced in 2017 as a means of funding apprenticeships within the UK. It applies to employers with an annual wage bill of over £3 million and is set at a rate of 0.5% of their total wage bill. While the levy is mandatory for eligible employers, the good news is that the funds can be used to pay for apprenticeship training and assessments. These funds can be accessed through the digital apprenticeship service, making it easy for businesses to manage their training budgets.
The key benefit of the Apprenticeship Levy is that companies can invest in training their workforce in areas where skills gaps exist, enhancing the capabilities of employees while contributing to long-term business success. If companies don’t use their levy funds within 24 months, they lose them, which encourages employers to actively invest in training and development.
For businesses that don’t pay into the Apprenticeship Levy, the government offers a co-funding scheme to make apprenticeships more accessible. Meaning businesses that know they won’t use theirs in time can help others improve, strenghtening business throughout the whole of the UK. The HOT Apprenticeships team is more than happy to help you understand more about the levy or a levy transfer so do feel free to get in touch with them: apprenticeships@regen.org.uk.
The Benefits of Apprenticeships for Businesses
- Develop a Skilled Workforce – Training can be given to people that benefits the specific needs of your business, making them and your business workforce better!
- Improve Retention – Apprenticeships assist with career progression which helps boost employee loyalty.
- Access Government Funding – The levy funds help to offset the training cost.
- Foster Diversity – Apprenticeships create opportunities for individuals from diverse backgrounds to thrive.
And that’s just a few of the great benefits companies and employees can get. With the right support from organisations like HOT, companies can ensure they’re getting the most from the Apprenticeship Levy while developing a skilled and motivated workforce.
