The apprenticeship levy is a government scheme that requires businesses with a pay bill of over £3 million to pay 0.5% of their total pay bill into a fund that will be used to support apprenticeships. The levy came into effect in April 2017 and is designed to help businesses invest in training and development for their employees. Although the levy may seem like an additional cost, there are many benefits that businesses can reap from it.
Firstly, the levy will provide businesses with access to funding for apprenticeship training programmes. This funding can be used to cover the costs of training new employees as well as existing staff who want to undertake an apprenticeship. In addition, businesses will be able to claim back up to 95% of the costs associated with training apprentices, which makes the scheme a cost-effective way of developing your workforce.
How the levy can benefit apprentices and businesses
The levy is expected to raise £3 billion per year, of which the government plans to invest £2.5 billion in apprenticeship training. This investment is hoped to create 3 million new apprenticeships in England over the next few years.
Although there has been some criticism of the levy – primarily from businesses who will have to pay it – the vast majority of people agree that it is a step in the right direction. There are many benefits of apprenticeships, and the levy should help to make them more accessible to everyone.
Apprenticeships offer young people the opportunity to learn a trade and gain practical skills, while earning a wage. They can also lead to a permanent job and increased earnings potential.
The benefits of apprenticeships: Why businesses should invest in apprenticeships
There are many benefits of apprenticeships for businesses. Apprenticeships provide businesses with a pipeline of skilled workers, and they can be a cost-effective way to train employees. In addition, apprenticeship programs can help businesses meet their diversity goals, and they can help businesses comply with government regulations.
The advantages of using the levy to invest in apprenticeship schemes
The levy is a great way to invest in apprenticeship schemes. By providing employers with funds to invest in training and development, the levy can help to improve the skills of the workforce and increase productivity. It also provides businesses with an opportunity to grow their own talent, which can lead to increased innovation and creativity.
Final Thoughts
So far, the levy has been successful in increasing the number of apprenticeship places available, and I hope that it will continue to be a valuable tool for training the next generation of workers.
For more information regarding apprenticeship schemes, visit our Apprenticeships page and fill out the form for one of our team members to get back to you.
For more information regarding the government levy, visit here
