Unlocking opportunities with the Apprenticeship Levy

In the dynamic world of apprenticeships, a promising path continues to emerge for individuals eager to gain valuable skills while contributing to their chosen sectors. Central to this development is the crucial aspect of funding, with the apprenticeship levy serving as a primary financial support source.

Starting an apprenticeship journey involves three distinct groups: career beginners, career switchers, and those seeking upskilling opportunities. A government report indicates that employers predominantly use their apprenticeship levy to upskill existing staff rather than recruit new talent or facilitate career changes.

This trend of favouring higher-level apprenticeships has been largely driven by the decision to use the levy for upskilling rather than new recruitment.

Leveraging levy funds

Employers can utilise their apprenticeship levy funding for training and end-point assessments within their organisation. Access to this funding requires collaboration with an approved training provider and/or assessment organisation.

Diverse applications

Employers with existing apprenticeship programmes have seen an increase in apprenticeship intake, while others have launched initiatives in new areas such as sales, accountancy, and HR/recruitment, thanks to the levy.

Shift in programme levels

The introduction of the levy has led to changes in the levels of apprenticeship programmes offered. There has been a notable rise in apprenticeship starts at level 4 and above, driven by the availability of standards at these levels and the focus on upskilling existing workforces, often already qualified at level 3 or above.

Supporting others

Levy-paying employers with surplus funds after fulfilling their in-house programmes are now seeking ways to use these remaining funds. Instead of returning the funds to the government, they are making a positive impact by transferring a portion of the unspent levy to provide free apprenticeship training, supporting other sectors, organisations and communities.

Since its launch in 2017, the apprenticeship levy scheme has directly benefited over 400,000 individuals. This number could significantly increase if all employers fully utilise their funds. At Paragon Skills, we collaborate with employers our levy transfer initiative to achieve this goal. Learn more about this initiative and how you can get involved here – https://paragonskills.co.uk/transfer-and-train-the-next-generation-levy-transfer/

Filling skills gaps and futureproofing

Apprenticeships are becoming the norm across industries as employers recognise the benefits of aligning training with company standards. This strategic approach not only addresses immediate skills gaps but also provides a framework for futureproofing against evolving workplace challenges.

It’s never too late to join the many UK businesses fully utilising their levy fund and helping other organisations thrive. Contact us today at 0800 783 2545. If you are not looking to use your levy fund, email levytransfer@pgon.co.uk to discuss how best to use this funding for your business or pledge it to support smaller employers today.