During National Apprenticeship Week, employers are encouraged to learn more about the value that Apprenticeships can bring to their businesses.
Apprenticeships have become a key part of the UK government’s plans to ‘build back better’ following the pandemic. Apprenticeships are an alternative means of education, allowing people to gain hands-on experience while studying towards an industry-recognised qualification and earning a wage.
Recent CIPD research has shown that, in hindsight, many University graduates would have preferred to do an Apprenticeship over a degree, as you can still obtain a degree via the Apprenticeship route by undertaking a ‘Degree Apprenticeship.’ This allows individuals to pursue degree-level study while gaining a head-start in their chosen career… the best of both worlds!
Larger employers who pay Apprenticeship levy (if your company has an annual wage bill of over £3 million, you will pay 0.5% of your annual wage bill as ‘Apprenticeship levy’) can also use their funds to up-skill and re-skill existing employees, regardless of age (subject to certain criteria)! Gone are the days an Apprenticeship was predominantly aimed at someone fresh out of school whose main responsibility was photocopying and making the brews! Larger employers paying Apprenticeship Levy have 24 months to spend their Levy pot otherwise, it automatically goes back to the Government.
Employers with an annual wage bill of less than £3million are known as ‘Non-Levy employers,’ but they can still receive funding towards the cost of training Apprentices, depending on the size of their business.
If you have less than 50 employees, you will be eligible for 100% funding for individuals aged 16-18. For any individuals aged 19+, you will receive 95% of the total cost of training the Apprentice of funding and you will be required to fund the remaining 5%.
If you have more than 50 employees, you will be eligible for 95% funding for individuals aged 16+ and you will be required to contribute the remaining 5% towards the cost of that Apprentice.
Additionally, all employers (regardless of turnover or headcount) who take on an Apprentice aged 16-18 are entitled to a £1,000 cash incentive!
Apprenticeships have advanced and can offer a lot to both the individuals and the businesses. Apprenticeships are no longer just for school-leavers, they are an opportunity to learn, advance and plug any skills gaps, which a lot of people, including your existing workforce, can take advantage of! Alas, further CIPD research shows us that 48% of large employers have returned unspent Apprenticeship levy funding and only 17% of them think the levy system is working well!
Do you need some help in fully understanding the Apprenticeship levy and how it works, so you can make the most of your contributions and not become one of the statistics of ‘employers returning unspent levy funding?’ Are you considering taking on a new Apprentice but don’t know where to start? Do you want to up-skill some of your existing workforce through Apprenticeships?
Get in touch today to find out how we can help you. Email email@example.com. Connect with us on LinkedIn and drop us a message – Peach Law (HR & Employment Law Specialists). Or pick up the phone and give us a call – 0161 478 3800