Apprenticeship programs offer a win-win solution for employers: access to fresh talent and a chance to mold skilled workers to fit specific needs. However, funding these programs can be a daunting task for many employers. In this blog post, we will explore essential tips for employers to maximize apprenticeship funding, enabling them to develop robust, sustainable programs that benefit both their businesses and the workforce.
Government initiatives:
The apprenticeship Levy was introduced by the UK government to encourage employers to invest in apprenticeship programs.
Here’s how the Apprenticeship Levy works:
- Employer Contribution: The Apprenticeship Levy requires all UK employers with an annual pay bill over a certain threshold to pay a levy. The levy is calculated as 0.5% of the employer’s annual pay bill, which includes the total amount of employee earnings subject to Class 1 National Insurance contributions.
- Allowance and Offset: Each employer receives an annual allowance of £15,000, which they can offset against their levy payment. This means that only employers with a pay bill over £3 million need to pay the Apprenticeship Levy. Employers with a pay bill below this threshold are not required to pay the levy but can still benefit from government support for apprenticeships.
How the funds are accessed:
The money that is gathered through the levy is paid into the employers Digital Apprenticeship Service (DAS) account, which can be accessed through an online portal. These funds can be used to cover the full cost of training, including the cost of a training provider and an end point assessment.
Keep in mind!
The funds in an employers DAS account must be used within a certain timeframe of 24 months. To prevent losing access to this funding employers should act on allocating them to their apprenticeship programs.
The Apprenticeship Levy is designed to create a more significant investment in apprenticeships and aid employers in creating a workforce that bridges skill gaps. It also aims to push employers towards creating apprenticeship programs that provide valuable learning opportunities for individuals while meeting the specific needs of the businesses.
learn more about the Apprenticeship Levy here – Apprenticeship Levy Information
Funding through partnerships
Another way employers can gain funding is through forming partnerships with educational institutions, industry organizations, and community programs. These partners may be able to contribute funds, equipment and expertise. Partnerships may also increase your company’s visibility between the shared marketing both companies can provide.
If this is the route you choose then ensure the apprenticehip program you have decided on can create positive impact to attract partners. You can also leverage company data to prove this through pitching to partners your companies retention rates, improved productivity, or successful career transitions for apprentices.
You can also attract funding by tailoring your program to fulfil specific industry gaps demonstrating the relevance of your program and value to partners.
Remember!
Should you choose either route it is important to begin your programs foundations correctly and define first number of apprentices to be employed, the duration of the program, and the focus on specific industries or skill areas. By having this defined you can strengthen the appeal of the program.
Maximizing apprenticeship funding requires a proactive approach from employers. By researching funding options, building strategic partnerships, tailoring program design, and demonstrating program impact, employers can create compelling proposals that secure the funding needed to invest in a skilled and motivated workforce.
