The benefits of apprenticeships for employers

We are helping employers and their employees in the public and private sectors achieve their goals through the high standard of apprenticeships and positive leaderships programmes that we offer. We are continuously improving the joy of learning with management and innovation endorsed by professional bodies.

We can help you create economic opportunities for you and your employees at all stages of their careers.

What are the benefits of apprenticeships for employers?

Apprenticeships are an effective way to use Government funding to up-skill your employees, with growth into your own senior leadership roles through fully certified qualifications.

Apprenticeships can be a cost-effective solution to expand your business, develop new departments and increase company growth, impact and innovation.

Apprenticeships provide a productive and effective way to grow and retain talent and develop a more motivated, skilled, and qualified workforce, with 90% of apprentices staying in their place of work after completion.

Apprenticeships provide organisations with an opportunity to diversify your workforce, bringing in new ideas and actively aiding succession planning.

We work closely with organisations to create programmes, adapted to the immediate needs of the company, and apprentices learn on-the-job in line with your company’s objectives.

We will help you to support your employees, developing the skills and knowledge directly relevant and beneficial to their day-to-day job. In addition, our apprenticeships team, all with extensive experience working alongside small and large organisations, will deliver effective apprenticeship solutions tailored to your organisation’s needs and objectives.

Funding for your apprenticeships

Apprenticeships are a great way to develop your team and impact your organisation’s success. Thanks to the Government’s Apprenticeship Levy, you can access funding to cover your costs.

Apprenticeship Levy Key Facts

  • The Apprenticeship Levy came into effect on 6th April 2017.
  • If your minimum pay bill as an employer is greater than £3 million, you’ll be paying into the Levy 0.5% of your total annual pay bill.
  • Those with a total annual pay bill of less than £3 million pay just 5% of the cost of their apprenticeship training and the government will pay the rest.  This means that your apprenticeships will be 95% funded.
  • RoATP success – Deere Apprenticeships is on the Register of Apprenticeship Training Providers, which means we are approved to provide apprenticeships to levy-paying employer partners.
  • Employers will have 24 months to use the Apprenticeship Levy; after this, the Levy funds will expire.

How does it work?

Payments into the levy will be 0.5% of your annual pay bill via the PAYE system, minus a £15,000 levy allowance, which is paid into your digital account in monthly instalments. Those payments – plus a 10% government top-up – will fund apprenticeship course fees and any end-point assessment, up to the relevant funding cap.

Need more information?

Gov.uk has detailed information on apprenticeship funding and setting up an online account. https://www.gov.uk/government/publications/apprenticeship-funding

Apprenticeship funding https://www.gov.uk/guidance/apprenticeship-funding-rules#to-2024-rules

How to register and use the apprenticeship service as an employer https://www.gov.uk/guidance/manage-apprenticeship-funds

The Apprenticeship Levy https://www.gov.uk/guidance/pay-apprenticeship-levy

Apprenticeship Levy FAQ’s

What is the Apprenticeship Levy?

The Apprenticeship Levy is a government initiative introduced in April 2017 to fund apprenticeship training in the UK. It is a mandatory tax paid by employers with an annual pay bill of £3 million or more.

How is the Apprenticeship Levy calculated?

The Levy is set at 0.5% of an employer’s annual pay bill. For example, if an employer’s annual pay bill is £5 million, they will pay £25,000 (0.5% of £5 million) into their Apprenticeship Levy account.

How can the Levy funds be used?

Employers can use the funds in their Levy account to pay for approved apprenticeship training and assessment costs for both new and existing employees. The funds can cover a wide range of apprenticeships, from entry-level to degree-level qualifications.

Do I have a time limit to use my Levy funds?

If an employer doesn’t use their Levy funds within 24 months, the funds will expire and be reclaimed by the government. It’s essential to have a robust apprenticeship program in place to maximise the Levy investment.

Can non-Levy paying employers access the funds?

Yes, employers with an annual pay bill below £3 million can access government funding to cover a significant portion (typically 95%) of apprenticeship training costs. However, they will need to co-invest the remaining 5% of the costs.

What are the benefits of the Apprenticeship Levy for employers?

  • Develop a skilled and qualified workforce tailored to your business needs
  • Improve staff retention and loyalty by investing in employee development
  • Access high-quality training and qualifications at a reduced cost
  • Enhance productivity, innovation, and competitiveness within your organisation

Can the Levy funds be used for existing employees?

Yes, the Levy funds can be used to up-skill and retrain existing employees through apprenticeship programmes, helping to close skills gaps and support career progression within your organisation.

How can employers maximise the benefits of the Apprenticeship Levy?

  • Develop a comprehensive apprenticeship strategy aligned with business goals
  • Identify talent gaps and create tailored apprenticeship programmes
  • Promote apprenticeship opportunities to existing employees
  • Collaborate with training providers like Deere Apprenticeships to design customised elements of an apprenticeship programme
  • Monitor and evaluate the effectiveness of apprenticeship programmes regularly

The Apprenticeship Levy provides employers with a valuable opportunity to invest in developing a skilled and qualified workforce, ultimately contributing to their long-term success and competitiveness.

Can levy funds only be used for apprenticeships?

Levy funds can only be spent on programmes provided by acknowledged training providers such as Deere Apprenticeships or registered end point assessment organisations. Employers cannot use the funds for other costs of training or apprenticeships.

What happens if an employer’s Levy funds won’t cover the full cost of their apprenticeship training programmes?

If an employer pays the Apprentice Levy and their funds don’t cover the full cost of the apprentice training, additional support is available on the UK government website: https://www.gov.uk/guidance/manage-apprenticeship-funds.

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If you are an employer and would like to discuss how we can help you assess your needs and build your AI automation and business transformation programme, please get in touch with any questions that you have.

 

Hexgreave Hall, Upper Hexgreave, Farnsfield, Newark,
Nottinghamshire, NG22 8LS

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