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Apprenticeships and Further/Higher Education

Why should businesses offer apprenticeships?

Apprenticeships help to shape the future of your business by bringing in fresh skills and developing a motivated, skilled and qualified workforce. This in turn provides an effective way to meet future skill demand, avoid external recruiting and improve staff retention.

Use your apprenticeship levy pot!

The way apprenticeships are funded changed when the UK Apprenticeship Levy came into effect in April 2017. The Apprenticeship levy is 0.5% of a company payroll, paid by all employers with a payroll in excess of £3 million per annum. 

For example, a company with an annual payroll of £4.5m would pay a £7,500 annual levy.

£4.5m - £3m = £1.5m

x 0.5% = £7,500

There are a number of levy calculators online to estimate how much your organisation will be paying towards an apprenticeship monthly.

The objectives of the Apprenticeship levy are as follows:

  • Put the control of Apprenticeship funding in the hands of employers
  • Enable employers to decide where, and how, the Apprenticeship money is spent
  • Give employers, who commit to Apprenticeships, the opportunity to get more out of the levy fund than they put in
  • Encourage the recruitment of more Apprentices and the investment in Apprenticeship programmes to upskill existing workforces
  • Through the additional employer incentive, encourage the employment of 16-18-year-olds
  • Fund the ambition for raising both the quality and quantity of Apprenticeships in England and assist the government in achieving its ambition to deliver 3 million Apprenticeships by 2020
  • Further change the perception of Apprenticeships to be regarded as a viable alternative to university 

Benefits of using your levy

The best way to benefit from the levy is to invest in Apprenticeships.

Significantly the introduction of the levy changes the funding structure of Apprenticeships and puts employers in control. This is shining a spotlight on our industry, the quality of Apprenticeships and what employers and employees stand to gain from them.

Whether or not your business is required to commit to the levy, its introduction presents an ideal opportunity to reassess your current involvement with Apprenticeships and what they can deliver to your business. If you don’t already employ Apprentices, we think you’ll be surprised by the benefits they can bring to your business.

As a top 10 Apprenticeship training provider at Paragon Skills we can assist and advise you on how to effectively plan for the levy and achieve the greatest benefit to your business.

You can call us today for experienced industry advice and information on all the ways you stand to benefit from investing in Apprenticeships.

Payroll less than £3m per annum? But still want to employ an apprentice?

If your payroll is less that £3m per Annam, then there is not requirement for you to pay the apprenticeship levy. However if you have less than 50 employees, you will not have to make any contribution to the cost of any apprentices you employ under the age of 18.

There will be a requirement to pay a 10% contribution towards the training of apprentices over the age of 19. The government will contribute the additional 90%.

If you have more than 50 employees, then this 10% contribution will be applicable to Apprentices of all ages, and the government will fund the remaining 90% of the cost.

Training providers

There are a number of training providers locally that offer a wide range of apprenticeships. If you have a specific apprenticeship you want to offer, please check the government’s helpful tool which helps you find local training providers that offer the training you are after.

Finding the right apprentice

If you are finding it hard to find an apprentice locally, why not have an stall at our next apprenticeship event? Where we have local career changers, students and parents come to find out about apprenticeships and local businesses that offer apprenticeships.

If this is something that you are interested in please contact Laura Bramley for more information.