Levy employers are at risk of loosing out on their apprenticeship levy training funds, due to not spending them and engaging in training and development.
If you are a Levy paying employer, you have gone through setting up a digital apprenticeship account (DAS) to be able to access the money you have paid towards future apprenticeship training. Now there is the pressure and responsibility of spending these first lot of funds by the end of April 2019.
Read on to find out how you can make the most of your Levy funds before they expire and implement a successful Apprenticeship training programme for your workforce.
Did you know; The Apprenticeship Levy funds in your DAS account expire 24 months after they were first deposited. Your first payment from April 2017 will expire April 2019 if you have not already committed this to apprenticeship training.
The introduction of the Levy has made a big impact on training and development for employees as spending this has been a slow start a slow start. Understandably organisations have had to take time to figure out how they will spend there levy and look at skills gaps within their team(s) and to also encourage employees to progress and add to their skillset, as well as creating new opportunities.
What happens with the funds if I don’t spend them? Any funds that are not spent within 24 months will be removed from your DAS account and put into the general Apprenticeship fund. Organisations will not be able to access this money back, missing out on using those Levy funds.
Follow these four steps to ensure that your organisation will not lose their levy funds…
- Using your digital account reports establish when you first deposited funds and calculate when you will hit your 24-month period.
- Find the right training provider for your organisation; As well as delivering a service and training to your workforce, utilise your training provider for their knowledge on different apprenticeships and how to identify skills gaps. A training provider is also useful for assisting you with your DAS account, including setting up and helping you manage your DAS account – and ensuring you gain the most value from your funds.
- Identify the skills gaps and roles within your team(s) and organisation that could be supported by apprenticeships.
- Work with your chosen training provider to set milestones for you to make effective use of your levy pot.
Alternative ways to spend your levy pot;
If you have covered the training, development and skills gaps of your employees and still have funds left and at risk of losing the remainder of your ‘pot’ there are other avenues you can take.
Did you know; Levy paying organisations can distribute monies out of their levy to other organisations. From April 2018, Levy-paying employers are able to transfer 10% of their Levy funds to other organisations if they are registered with the Digital Account Service and from April 2019 this increases to 25%. This is ideal for those looking to collaborate more closely with other companies, looking to support their local community or would like to invest within their supply chain.
Tempest Management Training Ltd can help you make the most of your Apprenticeship Levy and alternatively help you identify organisations to distribute your levy funds to, whether this be local community, collaborations or within your supply chain. Please contact us on 01623 600 810 and ask to speak to Katrina. Alternatively, you can contact Katrina by email; firstname.lastname@example.org
According to The Open University’s research ‘The Apprenticeship Levy: one year on‘ April 2018. their research shows that;
37% of organisations said offering apprenticeships has helped them attract new talent.
34% said apprentices bring a positive attitude to the workplace.
21% said apprentices are more productive than other members of staff.
83% of organisations said their experience with hiring apprentices has been good or excellent.
New masterclass taster workshop: Building the Team – Developing Potential in Others
Limited spaces available: 21st November
Aimed at individuals who are currently moving into or new to leading a team and would benefit from gaining some extra knowledge, improve their approach to management and identify areas for development. The taster workshop is also aimed provide individuals with tools and techniques to lead teams and to gain an understanding of the Team Leader / Supervisor programme.
Contact Katrina by phone on 01623 600 810, alternatively contact Katrina by email on email@example.com