Firstly, what is the Apprenticeship Levy?
In response to the ever-increasing number of cuts to organisations, the government came up with a solution to drive apprenticeships within businesses creating the ‘Apprenticeship Levy’. A levy (tax) for large organisations with a wage bill over £3 million with a subject charge in the region of 0.5% of their wage bill, carried into an Apprenticeship pot that the government holds.
This is the good bit; organisations can use this pot to create apprenticeships within their organisation. So instead of paying a tax bill with no gain to their organisation, now they can benefit from training their employees, in specific areas, with money that has already been used for one purpose, but now it holds a second. Therefore, organisations don’t have to select a second budget for their learning and development.
Why use the Apprenticeship Levy?
Why not? The money is just sitting in the pot until the end of the financial year. Using the levy will:
- strengthen your employees’ skill sets, knowledge and capabilities;
- Increase staff retention; and
- Improve staff motivation and morale.
Apprenticeships are an alternative to higher education. Creating apprenticeships within your organisation will make your business more appealing, as a proportion of employees look to improve their career prospects and personal skill set with their current employer, especially if they are seeking to grow with the organisation into supervisory, management and leadership roles. It also benefits individuals from becoming complacent within their roles.
Apprenticeships are no longer for the 16-18 year olds, as we first knew them. Now leaders, managers and technical experts have the opportunity to grow their capabilities to become resilient leaders and confident managers, through coaching. These are but a few of the skills employyees could gain.
So how does it work?
Firstly, you need to select a pre-approved training provider that is on the government’s list. At this point the government will approve the funds to be used, funds will then be paid directly to the appointed training provider. In order to regulate the quality of training supplied to learners, the government sets out a number of ‘trailblazer’ standards. Ensuring the provider is delivering within the set standards laid out. Meaning all apprenticeships are recognised across the board.
If your organisation is one of many that falls into the bracket of having a wage bill of over £3 million and is already setting aside a huge chunk of money for the government, then the apprenticeship levy is for you.
To use your organisation’s apprenticeship levy is a win- win. You’re not having to set aside an additional budget to upskill your employees, and your organisation is actually saving money.
It doesn’t just end there. Your business will be more appealing to the employees you already have, as well as prospective employees. Making you the go-to place for career opportunities, the sort-out business to approach. Apprenticeships are the future! Use your apprenticeship levy today to develop your employee potential and spot your future leaders of tomorrow with Dove Nest Group – specialists in leadership and management development training.