Apprentice levy: Is the apprenticeship levy just a tax?
Still to this day many employers are still looking at the apprenticeship levy as a tax. Meaning a large proportion of them are failing to invest in any training through the apprenticeship levy. Some businesses even said they offered formal training and the apprenticeship levy did not alter the nature of their training.
There is now only three months before business’ first lot of unspent apprenticeship levy payments are returned to the Treasury. But still many employees, and even more worryingly, senior decision makers who still don’t know what the apprenticeship levy is.
The apprenticeship levy was introduced in April 2017. It requires businesses with an annual wage bill of £3 million or more to pay 0.5 per cent of this amount into a fund which can be spent on apprenticeships.
In a report released by the Open University, The Apprenticeship Levy: One Year On, 40 per cent of business leaders reported treating the levy as a tax. Whilst almost one in five (17 per cent) said they had no expectation of recouping their funds.
According to Open University, back in April 2018, 92 per cent of levy funds in digital accounts have not yet been spent. This means just 8 per cent of apprenticeship levy funds have been spent in the first year of the scheme’s launch. With £1.28bn of £1.39bn paid in by businesses “sitting unused” in accounts.
Apprenticeship levy: More than just a tax
The apprenticeship levy is far more than ‘just a tax’. It has had massive benefits for businesses who have utilised it.
Employers who utilise their Apprenticeship Levy have have improved key objectives including employee retention rates and overall knowledge base of employees. An improvement in these has led to enhanced customer handling, better employee engagement and a decrease the number of complaints.
Their apprenticeship delivery programme’s have taken their learners and organisation on a journey. Employees will achieve nationally accredited and professional qualifications, which will lead to the organisation having an upskilled workforce.
Nationally accredited and professional qualifications provide benefits not only to the individual, but also to the business. It helps keep your organisation running more effectively, efficiently and proactively.
Enhanced professionalism throughout the workforce, with more employees gaining chartered industry status and memberships. Driving the overall operational competency and service provided by your employees to the next level.
Having the readiness to invest in your workforce strengthens the relationship between you as their employer, and them as your employee. It shows you are willing to help them get better at their job and progress in the business and in their career. Not only that, but it shows your workforce that you value them.
What we do
Vortex Training Solutions actively look to help employers who are paying the Levy. We help them understand how it works and manage their funds in the best way possible. Allowing them to get the best return of investment from their payments.
Since the introduction of the Levy we have been able to work with aspiring employers, who may have not considered an apprenticeship programme in the past. The Apprenticeship Levy is able to provide their business with specialised training their workforce needs to succeed.
We continue to provide levy paying businesses with a fully managed service. Giving our assistance and guidance to ensure full utilisation of the Levy can happen. We want to make your access to apprenticeship training as seamless as possible. Taking the problems you have encountered previously away.
If you are a Levy paying businesses and need help utilising it to the best possible benefit for you, or if you’re already using it but want to use it better we would love to speak to you and show you how we can help.
You can contact our experts by emailing us on email@example.com or calling on 0191 432 4401.