• Company

Use Your Levy Don’t Lose It!

Figures out from the Department for Education show that just over half of Apprenticeship levy payers have registered for their digital account and are therefore able to spend their levy money on training. Conversely this means that many haven’t, effectively they are writing off the money they have paid.
Companies that have a payroll of over £3m, pay 0.5% of this figure to the government in the form of an Apprenticeship levy. This money is to be used to pay for Apprenticeship training. The government top the money up by 10% and if you take on a young person, there are also additional financial benefits.
The DfE states that just 10,500 digital accounts have been set up from the 19,150 levy-paying eligible companies. As you can only use your levy through this account, it means that nearly 45% of paying companies cannot use their levy funds and will lose the money.
So why are companies not using their hard-earned cash for training?
There has been no research done on this as of yet, but professional organisations feel that the government should do more to promote the levy and the training available to businesses. It is thought that many business leaders do not fully understand the levy.
Another factor could be the conversion from current Apprenticeship frameworks to standards. The new standards, developed by employers for employers, are designed to ensure that Apprenticeships meet the skills agenda and the real needs of businesses. However, many businesses do not fully understand the changes.
If companies do not spend their levy money, there is no guarantee that this funding will be ring fenced for training. This is over a hundred million pounds not being used for training (based on the minimum payment). With employers often stating that they struggle to find skilled staff, then why not use your levy to raise the skills of your workforce through Apprenticeship training. The system is not complicated, so Use It – Don’t Lose It!