Over the last two years the apprenticeship landscape changed beyond recognition with the introduction of the Apprenticeship Levy. Since its introduction in early 2017, the levy has transformed the way in which apprenticeship funding is managed, the way in which we as Training providers now operate and with a host of trailblazer reforms changed the way in which apprenticeships are designed, delivered and assessed with the introduction of Apprenticeship standards.
How much of a contribution should you be paying?
Apprenticeship Levy is charged at 0.5% of your annual pay bill. If you are not sure what your Levy contribution is - use the Paragon Skills Levy Calculator. (Link levypage)
How should you go about spending your levy funds?
So you have your funding all worked out and are looking beyond to the steps you will need to take to ensure you’re getting the most from your Apprenticeship Levy Fund. You can plan for this by first making sure your team is aware of the available training fund and reviewing if there are any areas that you could look to utilise as CIPD training/upskilling your current staff.
Other areas you can look at as part of your plans could include setting out a companywide staff development plan which will review all areas of your business, and see how your training provider can best support your training needs. A good training provider will be able to offer ideas on how to best integrate Apprenticeships into all area of your business for Learning and development processes.
Are you going to use your full Levy Fund?
If you have used some but have no place to invest further you could look to share this with small and medium employers within your supply chain. This would not only help these smaller employer to develop the staff’s skill level, but could also lead to your business seeing the added benefits that this can bring, Including a faster more efficient service provided to your business.
Alternatively you could also look at working in partnership with local businesses and share your unspent funds with them (up to 25% as of April 2019) this will not just help support the local economy but will also help to raise local awareness and image of your brand.
How to see how much of the Levy fund you have to spend
You can use you online account which would have set up at the start of the Apprenticeship levy process - https://accounts.manage-apprenticeships.service.gov.uk/service/index. This will give you a full breakdown of the total amount you have left to spend, and when these funds will expire.
All contributions made to the Levy fund expire after 24 months, so will it is key that you keep track to make sure your business doesn’t lose out.
Your online account will also allow you to:
- Estimate your Apprenticeship funding
- Find an Apprenticeship training provider
- Sign off and manage any employer agreements
- Recruit an apprentice via the linked search tools
- Add and manage payments to all linked training providers your business is currently using
- Manage any transfer agreements and their payments
Want to find out more about how your business can benefit from Apprenticeships contact us today on 0800 783 2545.