Demystifying the Apprenticeship Levy

Recommendations for businesses and government to help employers unlock the full potential of the apprenticeship levy.

Recent figures about the widespread lack of understanding of the apprenticeship levy made for sobering reading. Research by Evolve Learning Group and West London College revealed that just under a third (32%) of qualifying employers are using the levy as a valuable opportunity to train both new and existing staff.

The reasons many employers leave levy funds untapped include:

• Only 37% fully understand how it could help their business.
• 78% agree more must be done to communicate the levy’s value.
• 80% believe businesses need better guidance to engage with the levy.

1. Look beyond the name

The term “apprenticeship levy” can sound like a payroll tax only for school or college leavers. In reality, it offers unique options to upskill existing staff at all levels. For example, at PA the levy currently funds:

• Five people in finance and HR – including four new recruits.
• A three-year degree in professional management for six existing managers.
• A future management diploma programme for an additional six staff.

2. Sift through the chaff

The majority of approved apprenticeship courses won’t suit every business, and employers must dig through extensive information to find relevant ones. The pay-off is a rewarding development experience and real business value. At PA:

• Finance apprentices study for an AAT qualification.
• Our HR admin recruit completes a Business Administration apprenticeship.
• Six managers work towards a BA (Hons) in Professional Management with Chartered Management Institute accreditation. Learn more about this degree course.

3. Call in the marketers

Why isn’t it easier to surface the most appropriate courses by sector and size? The National Apprenticeship Service’s occasional check-in calls came after we’d already chosen our route. A sustained, sector-specific communications programme—supported by a named contact—would help businesses quickly identify the best apprenticeship solutions.

4. Ask your allies

One of the best breakdowns of the apprenticeship levy came from our auditors during a free client seminar. Likewise, networks such as CIPD, CMI and ILM directed us to excellent resources. For instance, we discovered the Quayside School of Higher Education via the CMI website and are now partnering with them on our degree programme.

5. Check against progress

We need an official feedback channel where employers can share progress, discuss challenges, and highlight successes with the apprenticeship levy. Such a forum would not only enable peer-to-peer learning but also inform future government policy.

Rebecca Buck is Head of HR at the Press Association.

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