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levy funds

Unclaimed Levy Funds

Wednesday 29 August, 2018

The Apprenticeship Levy is probably one of the most controversial topics to impact on the way apprenticeships are funded.   Currently, reports indicate that there is over £1billion sitting in unused levy pots, having been deducted from large employers since April 2017.  Why aren’t companies using this?

One commonly held view is that the work the large employer must do to use their levy, is a barrier to the spend and some are deciding to “write it off as a tax”, rather than use it.   Those organisations who have made use of their levy pot had most likely embedded apprenticeships into their workforce before the levy and to them the introduction of the Apprenticeship Levy represented a relatively minor change to the funding.

Companies who weren’t already benefiting from having apprentices in their business not only have to now consider the administrative burden of the deduction of levy funds, but also the costs of hiring additional staff to manage the apprenticeship programmes, source accredited, quality training provision where it’s needed and have the added burden of dealing with the influx of many applications for their apprenticeship vacancies. 

Large organisations who have multiple geographical locations and occupational sectors also experience the challenge of finding one single apprenticeship training provider to look after all their needs.  Rarely, if ever, will a provider be able to meet the entire needs of organisations such as these   Those providers who offer the widest range tend to be colleges and their geographical coverage is often limited. 

An additional barrier to an organisation or company engaging with apprenticeships is the funding contracts that providers hold with the government.  Some apprenticeship training providers can only deliver to levy paying organisations / companies, some can only deliver to companies and organisations not in scope of the levy

Levy funds must be used by a company /organisation within 2 years - but what happens to unused funds?  They simply remain in the Treasury’s account.

SEAC clearly understand all the challenges that your business faces in respect of using your levy fund.  We can offer you advise and support to enable you to maximise its use to both invest in the skills development for your current workforce and train and develop new entries -apprentices- into your company /organisation.

Managed Apprenticeship Services are not widely understood but they present a national solution to the Levy issue.  Large organisations/companies don’t need to take on the many challenges highlighted when SEAC is set up to do all of this for you.  A National solution with a Local service is what we offer.   Our minimal service fee covers all aspects of recruitment, HR, payroll, supported performance management and the sourcing and quality assuring of training provision, from one apprentice in one of your business locations to many apprentices across your business – a fee that you can off-set against the time and resources you would need to take on an apprentice direct yourselves.

As an independent Apprenticeship Training Agency (ATA), we work with a large network of partner providers, who deliver under a Service Level Agreement to us, enabling us to source and quality assure a broad range of training provision across diverse occupational sectors.  Our independent status means that we are not limited to the apprenticeships that can be delivered unlike many ATAs that are attached to training providers and colleges with a limited range of provision. 

 

Currently working with large (and small!) organisations and companies across Leicestershire, Rutland, Lincolnshire, Nottinghamshire, Derbyshire and surrounding, your local Senior Account Manager Julie Green is available to discuss your apprenticeship needs.    

Call Julie on 07791 702663 or email julie.green@se-apprenticeship.co.uk