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The way employers invest in workforce development is evolving.
The Apprenticeship Levy currently enables employers to fund apprenticeship training, helping businesses recruit new talent and develop the skills of existing employees. The Government has announced plans to introduce a new Growth and Skills Levy, which is intended to provide employers with greater flexibility while continuing to place apprenticeships at the centre of skills development.
As these changes are introduced, employers will have more options to address skills gaps, respond to changing business needs and invest in workforce development.
At Access Training, we’re helping employers understand both the current funding system and the changes ahead, so they can make informed decisions about developing their workforce.
The Apprenticeship Levy was introduced to encourage investment in high-quality apprenticeship training.
Employers with an annual pay bill of more than £3 million pay the levy, with funds held in a digital apprenticeship account that can be used to pay for approved apprenticeship training and end-point assessment.
Employers who do not pay the levy can still benefit from significant government funding towards apprenticeship training, making apprenticeships an accessible and cost-effective option for organisations of all sizes.
Today, levy funding can only be used to pay for approved apprenticeship training and assessment.
The Government has announced its intention to replace the Apprenticeship Levy with the Growth and Skills Levy.
The aim is to create a more flexible skills system that enables employers to invest in a wider range of workforce development opportunities, while continuing to support high-quality apprenticeships.
Although apprenticeships will remain a key part of the new system, employers are expected to have greater flexibility in how some levy funding can be used to address priority skills needs.
As further guidance is published, additional training options will become available through the new levy arrangements.
One of the biggest changes is the introduction of Apprenticeship Units.
These shorter, targeted training modules will be taken from existing apprenticeship standards, allowing employers to develop specific skills without committing employees to a full apprenticeship programme where that better suits business needs.
This will provide more flexibility for employers looking to:
Continued investment in apprenticeships
Although additional training options are being introduced, apprenticeships will continue to play a central role in workforce development.
For many employers, a full apprenticeship will remain the most effective way to recruit new talent, develop future leaders and build long-term capability within their organisation.
Whether you’re looking to recruit apprentices today or prepare for the future of levy-funded training, our team can help.
We work with employers to:
If you’re unsure how the changes may affect your organisation, fill in our quick enquiry form below to speak to our team for advice.