Apprenticeship Levy - Explained
If your organisation is paying the levy, you can find out all you need to know right here about what it means and how you can use this opportunity to invest in the development of your people through Apprenticeships in Leadership and Management with Square Mile Leadership.
What is the Apprenticeship Levy?
The Apprenticeship Levy is a mandatory payment of 0.5% applicable to organisations that have an annual wage bill in excess of £3,000,000 that is collected by the government as a part of a new initiative to increase both the number and quality of apprenticeships in the UK. Collected monthly via PAYE, the government will also 'top-up' levy payer's accounts by 10%.
How soon can I use my funds for Apprenticeships?
The Apprenticeship Levy was introduced in April 2017 which kick-started the government's target of reaching 3 million Apprenticeship starts by 2020. The Levy is controlled over a rolling two-year period, which means that your organisation will continue to pay and collect levy funds up until April 2019; after this time, organisations will start to lose their funds paid in 2017 if they go unused.
What can I use my levy funds for?
Levy funds may be used for the new Apprenticeship Standards only. These have been developed by employers themselves to target specific skills gaps in a fully comprehensive Apprenticeship Programme. Most importantly, the Levy can be used to up-skill existing employees as well as to attract and train new starters with the overall aim of improving performance across the organisation. Equal payments are paid from your DAS account directly to your training provider, minus 20% which is held for the End Point Assessment.
What are the benefits of utilising the levy in my organisation?
An unprecedented opportunity to focus funding on the personal development of new and existing employees
Help to close the Skills Gap affecting most industries today, future-proofing against the impact of Brexit
Increased employee performance and productivity, morale, loyalty, confidence and more
Easier succession planning with team members training as Leaders and Managers before they receive a promotion
Reduced recruitment costs - up-skilling existing staff to take on new roles or attracting the 'right' people from the start
Ability to incorporate cultural and behavioural change into the development of employees, creating a shared vision.
The New Standards mean you can be assured that your apprentices will be trained to the same level of skill and quality as other new Apprentices, raising the overall standard of training in the UK
Mandatory '20% Off-The-Job' training allows for learning to be directly related to and applied back to their everyday role
Further questions relating to the Apprenticeship Levy?
- call us today on 0207 436 3636 or email email@example.com