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Leveraging the levy

With the introduction of the apprenticeship levy, levy paying employers can now benefit from ring-fenced training funds, as well as an annual £15,000 government allowance, 10% top up on all levy contributions and further cash incentives. Learning and development personnel and training managers no longer need to battle for these funds. The question is, how best to use them?

Firstly, employers need to be clear about what they can use their levy pot for. Levy funds can only be used for training and assessment for government approved frameworks or standards with providers listed on the Register of Approved Training Providers (RoATP).

Secondly, it’s important to understand what levy funds can’t be used for. That includes: paying wages, paying managerial costs, developing work placement programmes, paying travel and subsidiary costs, or building robots… No, apprenticeship levy funds are solely for the purpose of paying for apprenticeship training and assessment.

For large employers, where levy funds have been maximised, the SFA will pay 90% of the negotiated training cost for additional apprentices, on condition the employer has paid 10% to the training provider.

The government has opened up apprenticeship training with new eligibility criteria. Train up new team members, upskill existing team members or support your succession plans with apprenticeships. Does your team member have a degree? If it’s in an unrelated field they can now undertake an apprenticeship. Thinking of upskilling long-service team members? Apprenticeships are for all ages from Level 2 to Level 7 including leadership & management. They’re a great way to upskill managers and re-energise teams.

Take a look at our apprenticeship reforms page for more details on how Lifetime can support your training needs.

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