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The government back in April made some big changes to the Levy or (Skills and Growth Levy as its known now) and how you can use it and what additional costs their might be. Ultimately it was built upon restricting the use of them. But we think if you plan carefully enough you can still get a lot of bang for your buck. Here are the changes and our advice on what to do.
So, I have bundled these two together because ultimately, they combine to the same issue which is less money over less time. Previously, the government would top up any money but into the apprenticeship levy by 10% and you would have 24 months to spend it before it went back to the government’s coffers.
With 10% less in the levy pot this means you will have less money to spend and now less time to spend it. This means a functional plan is key to making sure get the most out of the levy and are not left short. We are currently working with our levy payers to develop a tailored strategy for the next 12 months meaning the organisation will get the benefit of the levy.
The previous rules meant when a levy pot ran out the apprenticeship funding would move into the rules that are set for SME’s (95% paid for by the government and 5% paid for by the Employer). This has now changed to 75% from the Government and 25% for the employer.
It’s again about planning, determine what you have and what you want to achieve in the now shortened 12 months. And I suppose either make sure you have the budget for the extra costs or look to cut if you are going over. Especially as you no longer have the 10% top up.
Finally, some good news. Skills England are releasing what they call apprenticeship units. These are much shortened training units on specific subjects. At the moment there is only a few available which you can find here. Honestly, from a training providers point of view the units have not been funded in an attractive manner. But the idea is solid and we think if provided with good options, this could be a great opportunity for Levy payers. The units CAN be funded using the levy.
This is definitely a promising idea but at the moment the short amount of units is limited. If the current ones do attract you then find a GOOD provider to work with. Don’t try to force it as its just shiny and new, wait to see what else is opened up.