How to use the Apprenticeship Levy to train existing staff
Learn how to make the most of the Apprenticeship Levy by upskilling your existing staff. This article from BPP covers the benefits and processes. Read now!
The Apprenticeship Levy allows employers to access government-funded business development. By partnering with an apprenticeship training provider, businesses can gain the future skills they need to grow in a difficult business climate.
BPP is an experienced apprenticeship provider with a history of creating skills solutions across industries for a variety of businesses. Read the article to find out how you can make the most of the Apprenticeship Levy to train existing staff, including:
How to use the Levy for existing staff training
Best practice for using the Apprenticeship Levy
Apprenticeship Levy case study
This article will also help you learn how apprenticeships, funded by the Levy, can be used to power business growth.
Read how BPP helped lead change at TSB through future skills.
What is the Apprenticeship Levy?
The Apprenticeship Levy is a tax paid by large employers to fund apprenticeship training. It aims to use apprenticeships to spread essential future skills in the workplace.
Employers with a wage bill of over £3 million pay the levy. While only 2% of UK businesses pay into the Levy, the fund is available to other employers that are looking to fill skills gaps through apprenticeships. If you’re a levy paying employer, you will have 24 months to spend levy funds.
The other 98% of employers, with a wage bill of less than £3 million, pay only 5% of the cost of an apprenticeship, with the government funding the rest.
This drive to promote apprenticeships comes at a time of historic labour shortages. Businesses also face high competition for in-demand skills such as data and digital, with vacancies exceeding the number of qualified candidates.
In this climate, the Apprenticeship Levy can be seen as a solution to unlocking business development, funded by the government. The benefits of the Levy can be seen throughout the business. Existing staff have a clear route for employee development and career progression, while the workforce can be expanded with new skills without a lengthy hiring process.
Read the Apprenticeship Levy FAQ
How to use the Apprenticeship Levy for existing staff training
Apprenticeships are not only used to attract new talent, but can be used effectively to train and upskill your existing team. Across all levels of the business, from junior employees to senior management, your workforce can benefit from apprenticeship programmes.
Using available levy funds, your workforce can be trained to fill skills gaps and develop future skills, allowing you to respond to changing business landscapes.
Why would existing staff want to undertake an apprenticeship?
Modern apprenticeship programmes are key to unlocking the skills businesses need. Key skills such as data, digital, and leadership can all be accessed through the Apprenticeship Levy.
For your existing workforce, implementing high-quality apprenticeship programmes demonstrates your investment in their careers and a clear pathway to career progression. This helps ensure long-term employee retention in a historically tight labour market.
Using the Apprenticeship Levy to train existing staff also provides employees with high levels of qualification related to their roles. For example, the highest levels of apprenticeships are equivalent to degree level.
Having staff both highly experienced and qualified in a way that is directly related to their job role is incredibly beneficial.
How do apprenticeships work for existing staff?
Apprenticeships are split between 20% learning time, and 80% working. During an apprentice’s learning time, they will be undertaking advanced coursework specifically targeted to their career path and role. This time can also be spent on other types of development, such as helping with different projects or shadowing experienced members of the team.
At work, apprentices will practice the skills they have learnt and gain practical hands-on experience. Apprentices find that they can apply their learning to the workplace straight away, with tangible benefits to the business.
New managers, for example, can gain the leadership skills they need to step into their role from day one, bringing their new knowledge to make an impact on the workplace.
Can I use the Apprenticeship Levy for short courses?
The Apprenticeship Levy is designed for high-quality and extensive employee development, so it cannot be accessed for short or one-day training courses. Apprenticeship courses can take anywhere from one to six years to complete.
Find out more about apprenticeships.
Best practice for the Apprenticeship Levy
When planning how you are going to use the Apprenticeship Levy, take time to identify any training needs or skills gaps in the workforce.
BPP’s Capability+ can help with this, by using our industry experts and close ties with a variety of organisations and industry bodies to assess your current and future skills needs.
With a clear picture of present and future skills gaps in your workforce, we can then create a targeted plan with apprenticeship programmes to address these issues, funded by the levy.
While implementing training plans remember to:
Keep track of progress and evaluate the impact of the training
Provide further encouragement for employee development in the future
Incentivise learners by recognising their achievements throughout the company
This will promote a culture of learning and development across the business to support apprenticeship programmes.
An Apprenticeship Levy case study
Watch the video to learn how Places for People worked with BPP to transform their workplace with digital and data skills.
Final thoughts
The Apprenticeship Levy is a tool to help you unlock the skills your business needs and empower your employees along their career path.
By working with a reliable training partner, your business can use the Apprenticeship Levy to make a noticeable change in the workplace. Industry-wide critical in-demand skills can be accessed within existing staff, helping you avoid a lengthy recruitment process.
Create an apprenticeship action plan for your business.
