TES have published an article about the Apprenticeship Levy Underspend. Details are below;
More than £1 billion in apprenticeship levy funding paid by employers expired unused between May 2020 and February 2021 alone, it has been revealed.
In a written answer to a parliamentary question from Liberal Democrat MP Layla Moran, skills and apprenticeships minister Gillian Keegan said that, across all employers in England, £1,039 million in levy funds had expired in the nine months following May 2020. This is a 22 per cent increase on the year before, when the expired levy value was £847 million for the period between May 2019 and April 2020. Introduced in 2017, the apprenticeship levy is paid by all large employers across the UK. Organisations pay into a virtual account and can then use those funds to support training. They have two years to use up their levy pot before it expires.
Apprenticeship participation has taken a big hit as a result of the Covid pandemic. In May 2020, the Federation for Industry Sector Skills and Standards predicted there would be around 120,000 fewer apprenticeship starts in the year from March 2020 as a direct result of the coronavirus.
Association of Employment and Learning Providers: ‘Extremely frustrating’
The Association of Employment and Learning Providers (AELP) chief executive Jane Hickie said the numbers will be “extremely frustrating for ITPs to see”.
She said: “The simple fact is that before the pandemic arrived the money could have been spent on SMEs’ apprenticeships. As we kept telling the government, the employer demand was there but the size and growth in providers’ non-levy contracts was very tightly restricted by the ESFA.
“Obviously with workplaces closed, the pandemic has had a major impact on apprenticeship starts and levy spend but the good news is that as we come out of lockdown, non-levy contracts are about to become a thing of the past with employers of all sizes being able to express demand through the digital apprenticeship service.”
Read the full article by visiting https://www.tes.com/news/revealed-ps1bn-apprenticeship-levy-underspend
If you want to discuss how to spend your apprenticeship levy, get in touch with our teamtoday
Last week the government announced the updated employer incentives for apprenticeships and an extension to the current Traineeship incentive scheme for employers. We have detailed the information below;
Recruit an Apprentice Incentive
The incentive has been increased to £3000, regardless of apprentice age!
The Government has announced they will be increasing the incentive payment for hiring an apprentice. They will be offering £3000 per newly recruited apprentice, regardless of age from 1st April 2021 to 30th September 2021. Claims are made via the DAS portal by the employer, claim window for this new incentive opens June 1, 2021. This scheme replaces the current job creation scheme, which ends on Mar 31, 2021.
The incentive of £1,000 per work placement opportunity provided has stayed the same
Unchanged employer incentive scheme, £1000 per work placement opportunity provided, this has been extended to 31st July 2022. The trainee must complete 70 hours of work experience in order for the employer to be able to claim this incentive. This is capped at 10 per region, per employer. Any incentives claimed in 2020/2021 will not be excluded from the cap limit of 10 in 2021/2022. Employers are required to claim this directly from the government using the web form claim system. Payments are made in full after 90 days have elapsed from the web form claim date.
National Careers Week (NCW) is a celebration of careers guidance and free resources in education across the UK. The aim is to provide a focus for careers guidance activity at an important stage in the academic calendar to help support young people leaving education.
We offer a range of courses for young people and adults to develop their skills and kick start their careers to gain employment or progress in their current roles.
The Parents’ Guide provides parents with the information they need to help their teenage children make the right choices to create successful futures after GCSE and sixth form. The National Careers Week team have created this online guide. This guide is designed to inform, involve and guide parental support. They include the most up to date information on topics such as apprenticeships, universities and revision techniques.
We are passionate about promoting the importance of career development whether it’s through completing an apprentice, going to university or going straight into employment.
Importance of Career Planning
It is important to come up with your career planning as it gives you the much-needed direction and makes it clear there where you see yourself in future. It makes you aware of your strength and weaknesses and the skills and knowledge that are required to achieve your goals in future.
A large proportion of our life is spent in achieving our career goals, thus it is very important to make sure that the right steps are taken and correct planning is done in the early years of your life. There are very few lucky ones who are born with a clear mind and who knows what they want to do and where they see themselves in life ahead. But the majority of us are not sure what we want from life and so it is very important to plan out things. This is what National Careers Week promoted and thus career planning is what gives your career and in some way your life, true meaning and purpose.
From 1st April 2021, all new apprenticeships will be managed and funded using the apprenticeship service. All employers hiring apprentices will need to have an apprenticeship service account in order to access funding. Levy paying employers will already have this function, this is where Levy funding is placed for these larger employers to spend on training. Non-Levy paying employers will need to create an AS account – many for the first time – and make a ‘funding reservation’ from the government, prior to enrolment of any new apprentices. AS account creation is necessary only once. We can assist with creating your AS account, talk to your business development consultant or email: email@example.com for guidance.
To find out more about the apprenticeship service you can visit the ESFA website by clicking here.
The website apprenticeships.gov.uk contains all the answers to questions frequently asked by apprentices and employers.
You can also view all of the ESFA Articles for Employers to help you with the apprenticeship service by clicking on the button below.
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