Organisations slow to invest their Levy funds
Over 50,000 organisations have contributed a total of £1.8 billion since its introduction, but have only withdrawn £108 million*. In England, this means that only 8% of levy payments has been withdrawn by organisation to pay for apprenticeships*.
How does your organisation plan to invest their Levy funds? Do you plan to make use of your full Levy spend?
We’re working with employers to create apprenticeship programmes in a range of subject areas to make the most of their Levy contributions. We’ve already helped M&S pass the milestone of 1,000 apprentices starting on Levy funded programmes.
Apprenticeship starts down
Since the introduction of the Levy overall apprenticeship starts have been lower when compared to the same period last year.
There have been 261,200 apprenticeship starts reported to date between August 2017 and March 2018 for the 2017/18 academic year. This compares to 362,400 and 346,300 starts reported in the same period in 2016/17 and 2015/16 respectively. This is a drop of 27.92% from last year’s figures.**
There are signs that starts numbers are increasing and we expect that by Autumn 2018 there will be increased demand as the next generation of school leavers search for apprenticeship opportunities. This is an ideal opportunity for employers to take advantage of a wave new talent eager to join apprenticeship programmes.
As with any new government policy the Levy will need time to bed in and we’re here to help. LDA can help your organisation develop your apprenticeship programme and make the most of your investment.
Use it or lose it
It has taken longer than expected for most organisations to access their apprenticeship levy funding and now is the time to get moving – before you start to lose it.
Levy funds remain in your National Apprenticeship Service account for a maximum of 24 months, so from April 2019 you could start to lose funding that could be used to upskill your new and existing employees.
How much would your organisation lose? Get in touch for further advice and guidance.
Apprenticeships are having a positive effect on employees
83%* of organisations who have implemented an apprenticeship programme using their Levy contributions, rate their experience as good or excellent. With many seeing a positive effect on employees, from an increase in positive attitudes and greater ambition, to higher engagement and increased loyalty.
Working with apprentices can also have a positive influence on other staff members. Many business leaders say that apprentices have made the rest of the workforce more productive, but they also pass on what they learn to others in the organisation, and generally lead to a more motivated and satisfied workforce.
*Statistics taken from the Open University research report: The apprenticeship levy: one year on. April 2018..
** Starts data sourced from DfE report: Apprenticeship and levy statistics: June 2018.