Apprenticeships
Expired Levy Funds
Monday 26th April 2021
Adam Simcox
Use it don't lose it!
Did you know that more than £1 billion in apprenticeship levy funding paid by employers expired unused between May 2020 and February 2021 alone. This is a 22% increase from May 2019 to April 2020, where expired levy was valued at £847 million.
The Apprenticeship Levy is a UK tax on employers which can be used to fund apprenticeship training. In the current tax year, it is payable by all employers with an annual pay bill of more than £3 million at a rate of 0.5% of their total pay bill. SME employers who do not pay the levy also benefit by having up to 95% of the cost of apprenticeships paid for by the government. Any funds that remain unused are channeled back to a central pot used to fund apprenticeships provided by other employers including your direct competitors. In effect if you don't use your levy money you are funding your competitors.
Skills and apprenticeships minister Gillian Keegan has stated that the government would make £2.5 billion available for investment in apprenticeships in the 2021-22 financial year, a crucial opportunity for organisations to spend this funding on new apprentices, up-skilling their existing staff or a combination of both.
Here at Oxford Applied Training we offer a Levy Consultation Service. Our experts provide a 360 consultative approach to building your Levy strategy and can manage the process on your behalf. We have subject matter experts to advise levy employers on the best and most efficient way to spend their apprenticeship levy to benefit their business.
Why not find out more and book a free no-obligation consultation with one of our consultants.
Here you can also find out more about the apprenticeship programmes we offer], our Digital First approach and our quality standards and commitment to apprentices and employers.
Or If you prefer why not contact us today or call us on 01235430460 for a free consultation with one of our expert advisors.