5 Myths about the Apprenticeship Levy
In the last few years, an estimated £3.5 billion of unused levy has been returned to the Exchequer.
This is money paid by UK businesses to upskill their people that has simply been lost to - what we believe - is a lack of understanding and confusion of what the levy is and how it can be used.
As a provider of ILM Level 3 & 5 Apprenticeships, let’s debunk a few myths right now…
“It’s too complicated…”
A lot of people working in human resources have a basic understanding of what the apprenticeship levy is…what they often struggle with is how to access and utilise the levy to upskill their people. Unfortunately, this means they are missing out on training opportunities and even worse, leaving a lot of unused funding on the table.
This is why we have partnered with Kendal College - an Ofsted approved educational body who are up-to-date with any new changes in policies within the apprenticeship standard - who will guide you through accessing your levy funding. This means you are supported through each step to get your programme up and running.
Here’s your first step to accessing your levy - Does your annual payroll exceed £3 million per year?
Yes = You are a levy payer. Speak to your Chief Financial Officer to find out how much is in your levy pot.
No = You are a non-levy payer. You will need to pay 5% of the maximum funding available per apprentice for the apprenticeship you are interested in e.g. Team Leader ILM level 3 = up to £4,500.00 funding per person - you will need to pay £225.00 per apprenticeship.
Not sure? = Speak to your Chief Financial Officer to understand your annual payroll amount.
“It’s generic and can’t be tailored…”
Many other providers that offer apprenticeships use an ‘off-the-shelf’ approach where their content and delivery format are set. The context in which tools are explained are done using generic examples to accommodate different businesses and industries in attendance. This allows them to ‘rinse and repeat’ programmes quickly.
Our aim is to design and deliver bespoke training programmes funded by the apprenticeship levy that meet your specific learning requirements whilst working within the apprenticeship standard. In short, it’s more work for us but it provides better value for our apprentices so it’s all worth it! For example:
No hidden costs - We do not charge expenses and any psychometric assessments are inclusive in the programme at no extra cost to yourself!
Learning Needs Analysis (LNA) - For in-house programmes (where all the apprentices are from the same business), we will completed a LNA to understand your culture, terminology, processes and current challenges. Doing this allows us to avoid duplication of any existing training and more importantly, tailor the context so it’s specific to you.
Tailoring the delivery format - Hybrid and remote working has changed the landscape of delivery for better or worse…we believe nothing beats face-to-face training but understand that geography and logistics does mean it’s sometimes necessary to deliver virtual training. Either way, we can tailor the delivery format to your learning requirements…this means programmes can be fully virtual, fully classroom or blended.
“It’s only for ‘big’ businesses…”
Contrary to popular belief, small businesses can utilise the apprenticeship levy to upskill their leaders and teams as long as they meet the entry requirements for the apprenticeship e.g. team members based in England, academic requirements etc.
As mentioned, as a non-levy payer, you are still able to access the apprenticeship levy as long as you contribute 5% of the maximum funding available per apprentice depending on the apprenticeship you want them to attend, for example;
Team Leader or Supervisor ILM Level 3 Apprenticeship (Max. funding available per apprentice = £4,500.00) = £225.00 per person
Operations or Departmental Manager ILM level 5 Apprenticeship (Max. funding available per apprenticeship = £7,000.00) = £350.00 per person
That’s a whopping 95% discount on a certified management development training programme.
“It’s only for school & college leavers…”
This is one of the most common misconceptions we deal with and it’s driven by the stereotypical view that Apprentices are young adults emerging from school, college and university.
To be clear…..there is no age or pay restriction for apprenticeships.
Anyone can be an apprentice as long as there is a training need that can be met by the apprenticeship standard. In other words, not training people on things they are already good at!
“It’s only for traditional trades…”
Another stereotypical view is that apprenticeships are seen as traditional trades such as; an electrician, a plumber, a bricklayer etc.
In reality, the apprenticeship levy is not limited to traditional trades and instead offers a wide range of apprenticeships designed to provide individuals with the skills and knowledge needed to succeed in the modern society and this include management and leadership development programmes. 9 times out of 10 in the workplace…you will have a boss…and we provide training to make your boss, the best boss possible to guide and support your performance and development.
Our two offerings are:
Team Leader or Supervisor ILM Level 3 Apprenticeship
Operations or Departmental Manager ILM level 5 Apprenticeship
To see what other apprenticeships are available, please visit https://www.instituteforapprenticeships.org/
Hopefully you now have a better understanding of what the Apprenticeship Levy is and feel confident to take those first steps to start utilising the fund to upskill your people.
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