The Apprenticeship Levy came into force in April 2017. The levy itself needs to be paid by employers with an annual pay bill of over £3 million per year.
What is the Impact for Small Employers?
- So why should small employers care? Well small employers can take advantage of co-investment. This is where the government co-invests to your apprenticeship scheme when you don’t have any levy funds to offset against funding (or for larger employers when they have used up all of their levy funds).
- In co-investment the employer pays 10% of the cost of the apprenticeship and the government pay the remaining 90%. If you are taking on an apprentice between the age of 16-18 it is still fully funded by the government, so you do not need any co-investment. Plus you can claim for a £1000 grant.
- Remember apprenticeship training is not just for new roles but can be used to up skill existing staff as long as the qualification is relevant to their job. Training can also be given to employees who are qualified to a higher level as long as it is not within the same field. For example, a qualified teacher could do an apprenticeship in leadership skills.
What are the benefits of apprenticeships;
- Up skill your existing workforce. A more skilled workforce can help stand you apart from your competition and deliver a more knowledgeable service to your clients.
- Help retain existing employees. Employees studying for a qualification often experience increased job satisfaction,
- Help attract new talent. Staff training and development is high on the list of factors job seekers consider when looking for employment.