Strategic HR Apprenticeship levy review
Learning curve
It’s been three years since the apprenticeship levy was
reformed yet there are still some issues. While take-up has
been strong, funding and access for SMEs are a problem,
hears SARAH RONAN
Look around this month and
you’ll inevitably notice one of
the following perennial features:
daffodils, Easter eggs, slightly
brighter evenings, frantic
accountants working on ‘year end’,
and the return of debate concerning
the apprenticeship levy in the UK.
This month marks the third
anniversary of the government’s
apprenticeship reforms, and with
each passing year we’ve seen the
commentary on it evolve. From the
initial drop-off in starts, to the
looming expiration date of levy
funds, the quality of the standards on
offer, and now to the lack of available
funding for SME apprenticeships.
Given that the 2017 shake-up of
the system was the most significant
in a generation, such
teething problems are
to be expected.
The levy is a tax on organisations
with a payroll of more than £3
million, requiring them to pay 0.5%
of their wages bill into an
apprenticeship fund, with the money
needing to be used within 24 months.
Last March, as that expiration date
approached for the first time,
concerns were raised about the
amount of levy funds still left
unclaimed.
At the time £3 billion of levy
funding had yet to be used and was
due to expire at a rate of £120 million
per month. This was clearly the
impetus employers needed though
as it led to a 15% increase in
apprenticeship starts in 2018/19.
However, the most recent figures
32 HR April 2020 hrmagazine.co.uk
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