33% Of Construction Firms ‘Ignorant’ Of Apprenticeships Levy

33% Of Construction Firms ‘Ignorant’ Of Apprenticeships Levy

Back in April 2017, the government launched its apprenticeship levy scheme, which requires all employers to pay 0.5 per cent of any wage bill over £3 million into this service in order to pay for apprenticeship course fees.

Employers that pay this levy will be able to access the funds that have been paid for the cost of training through a new digital account, with the government topping up the amount by an extra ten per cent.

But now, new research from Alliance Manchester Business School has revealed that 33 per cent of employers and 48 per cent of employees are ignorant of this apprenticeships policy, which suggests that certain opportunities are not being taken full advantage of, Construction Index reports.

Of those asked, 41 per cent of employers said they think the scheme is an underused training opportunity, but 37 per cent of companies that do offer formal training say that they levy has made no difference to what they offer.

Some 64 per cent of employers not currently offering external staff training say this is because they think the costs are too high, despite the fact that the majority of businesses either fully qualify or qualify in part for funded apprenticeships.

Director of the business school’s management practice programme David Lowe commented on the findings, saying: “On one hand employers are not presenting professional development options to staff while workers are likewise not approaching their employers for the opportunity to complete management programmes because they either don’t know it’s a possibility, or don’t think their company would support it.

“Meanwhile the UK is continuing to miss out on the growth opportunity provided by a highly skilled management force.”

Funding bands have been set out by the government to work out the maximum you’re able to spend on each apprenticeship and you will need to pay in full any amount you agree upon with your choice of training provider that’s above this maximum level.

For example, if you’re recruiting a 16-18-year-old apprentice, you’ll be entitled to a £1,000 incentive payment, paid in two instalments by your training provider. Any funds in your digital account will expire after 24 months if they’re not used.

Should your company have over 50 employees and you still don’t pay the levy, you’ll pay ten per cent of the training costs for every apprentice you hire. But a company with fewer than 50 employees won’t have to pay costs towards training an apprentice under the age of 18, or someone aged between 19 and 24 with an education, health and care plan.

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