In May 2017, the UK Government introduced apprenticeship reforms designed to boost the productivity of the UK’s economy and increase the skill level of our workforce. In order to fund the apprenticeship scheme, an Apprenticeship Levy was introduced in which companies with an annual wage bill in the UK over £3million are required to pay 0.5% of their annual wage bill into a digital account called the Apprenticeship Service (AS). If you choose not to use your levy funds to invest in your business, the balance will be re-distributed to other companies to fund their training and development activities.
If you’re a levy paying company, you can use the funds in your Apprenticeship Service account for apprenticeship training. Your levy contribution will be calculated as 0.5% of your annual wage bill, minus a government allowance of £15,000. The funds paid into your Apprenticeship Service account will receive an additional government top-up of 10% for every £1 paid and expire 24 months after the date of deposit.
If you're not a levy paying company, the Government will fund 90% of the cost of any apprenticeship training via approved providers, and you will need to fund the remaining 10% yourself. There may be other funds/grants available to help too.
Whilst you are unable to decide whether you wish to opt-in to the Apprenticeship Levy, you are able to decide how you use the balance in your online digital account. At Apprentice Connections we take time to get to know your staff, your business and how you work to ensure we organise strategically designed solutions and bespoke programmes that improve productivity in your business and demonstrate a clear return on investment for your levy payments. By sourcing solutions from multiple training providers, we span start-to-finish recruitment services through to fully flexible on-the-job training at your workplace, including options to train your existing staff.