Unlocking the full potential of the apprenticeship levy

A promising avenue continues to unfold for individuals seeking to acquire valuable skills while contributing to the growth of their chosen apprenticeship sectors. At the core of this development lies the crucial aspect of funding, with the apprenticeship levy standing out as a primary source of financial support.

Embarking on the apprenticeship journey involves three distinct types of starters: career beginners, those switching careers, and individuals seeking upskilling opportunities. According to a government report, employers were largely utilising their apprenticeship levy predominantly for upskilling existing staff rather than recruiting fresh talent or facilitating career changes.

This previously common preference of employers to favour the apprenticeship at higher levels was predominantly shaped by the decision to use the apprenticeship levy for upskilling staff rather than engaging in new recruitment.

Leveraging levy funds

Employers have the flexibility to leverage their apprenticeship levy funding fo training, encompassing end-point assessments for programmes within their organisation. Access to this funding is contingent on collaboration with an approved training provider and/or assessment organisation.

Diverse applications

Employers with pre-existing apprenticeship programmes have experienced a surge in apprenticeship intake, while others have introduced apprenticeship initiatives in previously unexplored areas such as sales, accountancy, and HR/recruitment, thanks to the apprenticeship levy.

Shift in programme levels

The introduction of the levy has precipitated changes in the level of programmes of offer. Notably, there has been a rise in apprenticeship starts at level 4 and above, driven by the availability of standards at these levels and the increasing focus on upskilling existing workforces, often qualified at level 3 or above.

Supporting others

Levy-paying employers, left with surplus funds after fulfilling their in-house programmes, are now actively seeking avenues to utilise these remaining funds. Rather than 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, thereby supporting other sectors and communities.

The levy scheme, launched in 2017, has directly benefited over 375,000 individuals. However, this number could significantly increase if all employers maximise their entire fund. At Paragon Skills, we collaborate with employers through our Transfer to Train campaign to achieve this goal. Learn more about this initiative and how you can get involved here – link to the page.

Filling skills gaps and futureproofing

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

It’s never too late to join the multitude of businesses in the UK fully utilising their levy fund.  Contact us today on 0800 783 2545; if you are not looking to use your levy fund, email levytransfer@pgon.co.uk to talk to our team about how best to use this funding for your business or even pledge it to support other smaller employers today.