The Apprenticeship Levy – the growth of skills and capability
“What is the apprenticeship levy?” is a question I’ve been asked more times than I can recall.
Put simply, it’s a tax paid to the government to ensure apprenticeship learning, development and training within your business. Since the levy was introduced, over 313,000 people have started an apprenticeship.
As an employer with a payroll of £3 million or more, you are obliged to make monthly deposits of 0.5 percent (of your annual pay bill) into the apprenticeship levy pot
It may sound fairly straightforward but a lack of understanding over the past year has left over £133 million unspent! This is an incredible amount of money that could be spent on building stronger workforces.
In this case, knowledge is very much power.
At Umbrella, we know that levy funds, transfers, and the digital apprenticeship service (DAS) can be daunting – which is why we’re here to help!
So, what is the best way to utilise this source of income?
Engage with the apprenticeship programme – whether they are new or existing staff.
Start planning. Effective use of the levy will maximise business performance and allow analysis of facts and figures specific to subject areas.
Use it to upskill your employees and tailor your budget to fulfil your organisation’s needs for learning and development training.
Time is your friend. You have 24 months to spend the levy pot –just spend it wisely and keep in mind that if it’s worth investing, it’s worth risking.
If you aren’t confident you can spend the levy pot, you can donate it. Up to 25 percent of your levy pot can be donated to smaller businesses to help them engage and retain their workforce.
Now is the time to accelerate your business and someone else’s career. You can work hand-in-hand to create the ultimate strategy.
