Apprenticeship Levy Consultancy

Skills for Logistics can work in partnership with your business to develop your Apprenticeship Levy strategy. This holistic service includes apprenticeships, policy, process, procedure and programmes. We are uniquely positioned with some of the top Apprenticeship Levy experts on our skills council available to assist you. As a not-for-profit business we offer value, objective oversight and compatible ethics to align our expertise with your culture so you can get the most out of the Levy. The Levy offers a truly unique opportunity to address some of the underlying challenges that the logistics sector faces. We believe the Levy can help address the skills gap, the digital skills gap and could be used to offset labour challenges created by Brexit. Given the impending introduction of the Levy, and the limited window in which to extract value from it, the time is now to engage with the initiative. Speak to one of our advisors today about getting the most out of the apprenticeship levy. More information on the Apprenticeship Levy Driven by their productivity agenda, the government is committed to achieving three million apprenticeship starts by summer 2020.

To do so, the government has confirmed the introduction of an Apprenticeship Levy from April 2017 – a fundamental change to the way Apprenticeships in England are funded. Employers with a UK payroll of over £3m from both the private and public sectors will be required to pay 0.5% of that into a Levy.

The Levy payment will then be ring-fenced in the form of an electronic voucher that can be used to purchase apprenticeship training.

The Levy is the government’s logical solution to funding the increase in numbers and putting control of funding in the hands of employers.

“The government’s advocacy of apprenticeship is perfectly well-founded. They are an excellent and cost-effective way of developing high-level skills, and raising economic productivity. And there is huge demand for them: not just at Rolls-Royce (where it is much harder to secure an apprenticeship than to enter a top Russell Group university), but across the economy and across all regions.”

- Alison Wolf, “Fixing a Broken Training System: The case for an Apprenticeship Levy”, Social Market Foundation report, July 2015.

All of this means that there are many questions employers will likely ask themselves: How does the Levy apply to my organisation? How can I create apprenticeships that are relevant and of good quality? Can I gain more from the Levy than I put in? Who can help us get all this set up effectively? * Higher funding for STEM apprenticeship frameworks and higher pricing of apprenticeship standards to support improved quality, and greater flexibility to train those with prior qualifications; * Longer period of time for employers to spend funds in their digital account, now with 24 months before they expire, an increase from the original proposal of just 18 months; * A commitment to introducing the ability for employers to transfer digital funds to other employers in their supply chains, sector or to Apprenticeship Training Agencies in 2018, with a new employer group including the Confederation of British Industry, Federation of Small Businesses, British Chambers of Commerce, Charity Finance Group and EEF – the Manufacturers’ Organisation – to help government develop this system so that it works for employers; * 90% contribution from government to the cost of training for employers that will not pay the levy; * 100% contribution from government to the cost of training for small employers that will not pay the levy and who take on apprentices who are 16 to 18 years old, 19 to 24 year old care leavers or 19 to 24 year olds with an Education and Health Care Plan; * £1,000 each from government to employers and training providers when they take on 16 to 18 year olds, 19 to 24 year olds who were in care or who have an Education and Health Care Plan; * Help for training providers to adapt to the new, simpler funding model through an additional cash payment equal to 20% of the funding band maximum where they train 16 to 18 year olds on frameworks; * A simplified version of the current system of support for people from disadvantaged areas to ensure the opportunity to undertake an apprenticeship is open to everyone, no matter where in England they live, their background or family circumstances.