Growth and Skills Levy: Core Changes for Employers in England
There are a number of core changes to the apprenticeship funding system that came into force with the launch of the Growth and Skills Levy. The changes include a shorter levy fund expiration window of 12 months; the removal of the 10% government top up of your levy pot and an increase in the co-investment amount should your levy pot not cover the full cost of training.
The Growth and Skills Levy is an update to the apprenticeship funding system in England and replaces the Apprenticeship Levy. The Levy itself is a 0.5% contribution paid by employers in England with a wage bill of over £3 million. These funds are added to your digital apprenticeship account on the Apprenticeship Service platform. Employers in England can then use these funds towards the cost of apprenticeship training for existing or new members of staff.
The funds in your levy pot can now be spent on shorter training courses rather than traditional apprenticeships, making it easier to train existing staff in specific disciplines such as AI or digital skills.
The government now also covers 100% of the training and assessment costs for apprentices aged 16–24. This change is designed to remove co-investment barriers for small and medium enterprises (SMEs) who were previously put off by the potential co-investment fees required.
You can learn more about the changes to your levy pot in our previous article.
Growth And Skills Levy Fund: What Employers in England Need to Do
As the Growth and Skills Levy Fund changes come into effect, there are a few things employers in England need to do to ensure they are maximising the benefits of their apprenticeship funds.
Review Accounts and Budgets: With the 12-month levy fund expiration window it is vitally important that you review your current account balance and note when those funds will expire.
Review Training Plans: With shorter funding windows you’ll need to consider shorter, targeted upskilling options alongside traditional apprenticeship options.
Speak to Your Apprenticeship Provider: To ensure your training plan is properly targeted, speak to a trusted apprenticeship provider such as Pro- Apprenticeships who can evaluate your plans and ensure you are maximising your levy pot.
How Can Employers in England Use Their Levy Funds?
Whilst most employers are aware that you can use your funds from the Growth and Skills Levy to cover the cost of training a new apprentice, many are unaware that it can also be used to upskill your existing team members.
For many businesses, this makes more sense than taking on another member of staff and allows you to develop existing talent to their full potential. You could use your levy pot funds to train an employee and fill a skills gap in your team. Popular course choices include AI, marketing and project management.
We would be happy to have a chat with you if you would like to learn more about courses to upskill your employees.
Pro-Apprenticeships: Helping Employers in England Make the Most of The Growth and Skills Levy
Pro-Apprenticeships provide apprenticeship training and support to employers across England. We are proud to be an Ofsted Outstanding Apprenticeship Provider and to have a 100% first time pass rate for our apprentices.
If you are an employer in England who wants to learn more about the Growth and Skills Levy and how you can best use your levy funds to strengthen your business, reach out to our experienced team.