The Apprenticeship Levy | learndirect

The Apprenticeship Levy

Helping you develop a working strategy

The Apprenticeship Levy

It’s been over a year since the Apprenticeship Levy was introduced and research suggests that organisations have been slow to invest their Levy funds in apprenticeships. A total of £1.8 billion in Levy payments have been made since its introduction, but organisations have withdrawn just £108 million.

Now is the time to make the most your Levy funds – before you start to lose them. Levy funds remain in your National Apprenticeship Service account for a maximum of 24 months, so from April 2019 you could start to lose funding that could be used to upskill your new and existing employees.

One year on

The Apprenticeship Levy one year on – some of the key points from the first year of the Levy:

  • Organisations slow to invest their Levy funds

    Over 50,000 organisations have contributed a total of £1.8 billion since its introduction, but have only withdrawn £108 million*. In England, this means that only 8% of levy payments has been withdrawn by organisation to pay for apprenticeships*.

    How does your organisation plan to invest their Levy funds?

    Do you plan to make use of your full Levy spend?

    We’re working with employers to create apprenticeship programmes in a range of subject areas to make the most of their Levy contributions.

  • Apprenticeship starts down

    Since the introduction of the Levy overall apprenticeship starts have been lower when compared to the same period last year.

    There have been 261,200 apprenticeship starts reported to date between August 2017 and March 2018 for the 2017/18 academic year. This compares to 362,400 and 346,300 starts reported in the same period in 2016/17 and 2015/16 respectively. This is a drop of 27.92% from last year’s figures.**

    There are signs that starts numbers are increasing and we expect that by Autumn 2018 there will be increased demand as the next generation of school leavers search for apprenticeship opportunities. This is an ideal opportunity for employers to take advantage of a wave new talent eager to join apprenticeship programmes.

    As with any new government policy the Levy will need time to bed in and we’re here to help. LDA can help your organisation develop your apprenticeship programme and make the most of your investment.

  • Use it or lose it

    It has taken longer than expected for most organisations to access their apprenticeship levy funding and now is the time to get moving – before you start to lose it.

    Levy funds remain in your National Apprenticeship Service account for a maximum of 24 months, so from April 2019 you could start to lose funding that could be used to upskill your new and existing employees.

    How much would your organisation lose? Get in touch for further advice and guidance.

  • Apprenticeships are having a positive effect on employees

    83%* of organisations who have implemented an apprenticeship programme using their Levy contributions, rate their experience as good or excellent. With many seeing a positive effect on employees, from an increase in positive attitudes and greater ambition, to higher engagement and increased loyalty.

    Working with apprentices can also have a positive influence on other staff members. Many business leaders say that apprentices have made the rest of the workforce more productive, but they also pass on what they learn to others in the organisation, and generally lead to a more motivated and satisfied workforce.

*Statistics taken from the Open University research report: The apprenticeship levy: one year on. April 2018.
** Starts data sourced from DfE report: Apprenticeship and levy statistics: June 2018.
Retail apprenticeships

Request a call back

Request a call back from our Levy Management Team for advice and guidance on your organisation’s Apprenticeship Levy strategy.

Retail apprenticeships

What is the Levy and who will have to pay?

The Apprenticeship Levy will be a tax on large UK employers with a pay bill of over £3 million per annum. These Employers will be required to pay 0.5% of their annual payroll into the Levy and these funds will be used to pay for new apprenticeships.

Why the Apprenticeship Levy?

The government is committed to developing vocational skills, and to increasing the quantity and quality of apprenticeships. It has committed to an additional 3 million apprenticeship starts in England by 2020. The Levy will help to deliver new apprenticeships and support quality training by putting employers at the centre of the system.

How to make the most of your Levy payments?

From understanding your levy bill, to identifying your business needs and running a pilot programme, we can help you maximise your organization’s return on the Levy. Now is the perfect time to explore how apprenticeships can be used to develop the skills of your workforce.

Why is DTS your ideal partner?

We are a specialist provider of Levy funded apprenticeships and have a proven track record when it comes to larger employers.

Our team of experts are well placed to help you understand the impact of the Levy and to help you plan, develop and deliver your apprenticeship programmes. From fully managed solutions and bespoke learning materials to marketing and communications support, our flexible partnership approach offers the perfect solution.

Find out more about the DTS service

We can offer apprenticeships in a range of subjects and we’ll work with your organisation to identify the right mix of training / qualifications to meet your business needs.

Get in touch to find out we can help your organisation develop your Levy strategy. We’ll help you:

  • Understand your Levy spend and what it means for your organisation
  • Manage your Levy spend and subsequent payments
  • Identify apprenticeships relevant for your organisation - assessing the training you do now
  • A robust delivery model in place to ensure a good learner/employer experience
  • Plan, create and deliver successful apprenticeship programmes in a range of subject areas
  • We will ensure we understand your business, and that our coaches immerse themselves into your daily working life
  • Providing both employer and learner with a bespoke reporting system giving full visibility of learner progress, live reporting and overview

Request a call back

Request a call back from our Levy Management Team for advice and guidance on your organisation’s Apprenticeship Levy strategy.

Retail apprenticeships
Retail apprenticeships