Since its introduction in 2017, the Apprenticeship Levy has offered UK employers a valuable opportunity to fund skills development and build future-ready teams. Yet, many organisations still struggle to maximise on its benefits.
This blog explores practical strategies to help your business unlock the full value of the Apprenticeship Levy.
Identify Skills Gaps
Are you aware that the Apprenticeship Levy can be used to fund high-quality training for both new hires and existing staff? Whether it’s upskilling managers or helping employees transition into new roles, apprenticeships can support workforce development at every level and the Apprenticeship Levy intends to help employers achieve this.
Whether it’s technical skills, engineering expertise, or digital skills, identifying both current and future skills gaps and investing in apprenticeships tailored to meet these demands supports long-term workforce planning and improves internal talent pipelines. This allows you to develop the specific capabilities your business needs both now and for the future.
Apprenticeship Levy funds have a 24-month shelf life, so adopting a forward-thinking approach to workforce development is essential. Consider establishing a rolling plan to help you anticipate future skills gaps and align apprenticeship starts according to business needs. This will also help you ensure that levy funds are utilised effectively rather than going to waste.
Utilise Apprenticeship Levy Transfers
If you’re a levy-paying organisation, you can share up to 50% of your annual apprenticeship levy funds with other employers. Known as a levy transfer, this initiative enables you to support other businesses by covering the training and assessment costs for apprenticeships, regardless of whether they pay the Levy or not. You can choose who receives your funds, giving you control over how your unused Levy is spent.
Your transfer allowance is calculated based on 50% of the funds from the previous financial year. These transfers aren’t one-time payments; they are a commitment to fund an apprenticeship throughout its duration. Transfers can support new apprenticeship starts for existing staff or when an apprentice changes employers.
To make a transfer, use your digital apprenticeship service account – it’s a meaningful way to invest in the future workforce while maximising the value of your levy contribution.
Please refer to the Apprenticeship Funding Rules on the GOV.UK website for key information and further rules on transferring levy funds.
Effectively Manage Apprenticeships
Train Your Line Managers to Support Apprentices
The success of an apprenticeship often depends on the support of line managers. Invest in basic training for managers to ensure they understand how to mentor apprentices and integrate learning into their job roles effectively.
Engage Leadership and HR Early
Involving senior leaders and HR teams from the start ensures apprenticeship programmes align with your business strategy and talent planning. By securing their buy-in from the beginning, you create internal champions who can help drive visibility, support, and integration across departments.
Monitor Your Digital Apprenticeship Service Account
Your Digital Apprenticeship Service (DAS) Account allows you to track funds, start dates, and expiration dates. It’s therefore essential to keep a close eye on it!
Regularly monitoring your account can help you avoid losing unused funds and identify when to reinvest or transfer.
Choose the Right Training Provider
Not all training providers offer the same level of flexibility, expertise or quality. Do your research to find a provider who understands your industry, offers tailored delivery, and will effectively support your business and your apprentices.
As an approved national training provider with more than two decades of experience, we’ve built our reputation on delivering results. We equip our apprentices with the skills that industries need now meaning employers benefit from a workforce ready to hit the ground running.
We are proud of our 99.9% pass rate, 90.2% achievement rate, and 90.6% retention rate. Additionally, Lockhart Hawkins recently ranked us second among 133 large apprenticeship providers nationwide.
Contact our team of experts to learn more about how we can help your business recruit, train, and retain apprentices.
Please note: For more information on who must pay the Levy and who can access it, as well as sector-specific rules, please visit GOV.UK.
Source:
Department for Education, “Transferring Your Apprenticeship Levy to Another Business”. GOV.UK. 13 September 2021. www.gov.uk/guidance/transferring-your-apprenticeship-levy-to-another-business
Department for Education, “How are apprenticeships funded and what is the apprenticeship levy?”. GOV.UK. 10 March 2023. www.gov.uk/guidance/pay-apprenticeship-levy