A recent study carried out by The British Chambers of Commerce and Middlesex University has revealed that nearly a quarter of the 1,400 companies paying the Apprenticeship Levy had no understanding of how their company can benefit from it.
Over half of the Levy-paying businesses see it as an additional cost, with 56% not expecting to recover any or only a portion of their payment, compared to 36% who expect to recover all or more of their payment.
Introduced by the government in April 2017 as part of a scheme to create 3 million new Apprenticeships by 2020, many employers have expressed their anger at the money the Levy is costing them, unaware of the benefits they could reap from it – just 37% of businesses said they fully understood the Levy and how it could benefit them.
NLT Chief Executive Sarah Temperton is urging any Levy paying companies in Derbyshire and Lincolnshire that are not making full use of their contribution, to get in touch with NLT.
She explained: “Many see the Levy as a means of training new staff, however it is also a great way to upskill existing staff, so they can take on more responsibility and develop their careers. NLT not only offers Apprenticeship training but also commercial Health and Safety and engineering training which we can help companies access.”
She added: “By not tapping into the Levy, companies could be missing out on the opportunity to improve existing staff skills and bring new employees on board.”
Since 6 April 2017 employers with a wage bill of £3m or over must pay 0.5% tax on their payroll to the Levy. Companies who pay the Levy can claim their Levy back as a voucher which they can then use to pay for Apprenticeship training.
Those with a wage bill below £3m do not have to pay the Levy but are still able to apply for Apprenticeship funding – up to £15,000 per annum – although three-quarters of these companies have yet to act, or were not aware of the available funding at all.
Apprenticeships can be used to train both new and existing employees and give people the skills to gain and sustain employment – benefiting employers of all sizes and the UK economy as a whole.
Companies hiring Apprentices have as much to gain as the workers themselves. An Apprenticeship is a mutually beneficial process that delivers bottom line benefits to a business.
It is proven that Apprentices improve productivity in a business, making a positive impact on its bottom line by average of £214 a week. Learn about the benefits of employing an Apprentice here.
For help and guidance understanding the Levy or to enquire about recruitment and training for Apprentices, get in touch with NLT’s Business Development team.
To discover NLT’s full range of Apprenticeships and training courses, download a brochure here.