One in three employers not aware of apprenticeship levy

13 Mar 17

Nearly a third of employers are not aware of the government’s forthcoming apprenticeship levy, according to a survey.  

More than half (55%) did not think or were unsure if the levy would have an impact on their business, says research from skills agencies, conducted last week.

While 77% of the 500 employers surveyed viewed apprenticeships positively or very positively, 80.8% said they had experienced some form of barrier to taking on apprentices.

The research – carried out by Skills for Health and Justice and the National Skills Academy for Health – found issues with taking on apprentices included finding suitable candidates, a lack of funding and a lack of time to develop roles.

John Rogers, chief executive of Skills for Health and Justice, said: “Taking on and training apprentices is a fantastic way for organisations to shape the future of their business and it is imperative they know how to make the most of new opportunities.”

Employers with a total pay bill over more than £3m each year will be required to pay the levy – which will be charged at 0.5% of the wages they pay out – from 6 April.

From 1 May, employers will be able to draw on apprenticeship funding from the pot for approved training schemes. And from next year, firms will be able to access funds for training whether they pay the levy or not.

Rogers added: “With less than a month to go until the levy is introduced, some of the results are concerning.

“It is really important that organisations know how the incoming apprenticeship levy is going to affect them and how to make sure their organisation is adequately prepared.”

Of the 500 employers in the survey, 44.8% thought the levy would have an impact on their business, 36.78% thought this impact would be positive to very positive, 27.1% thought this impact would be negative to very negative. Thirty-one per cent were unaware the levy was coming in. Click here for an infographic of the main findings of the survey.

Skills for Health and Justice [Skills for Health and Skills for Justice merged in 2015] and National Skills Academy for Health are not for-profit organisations dedicated to driving up standards in their relevant workforces – healthcare, justice and community safety. They are funded by the Skills Funding Agency and European Union.

Did you enjoy this article?