The skills gap in the UK continues to be a significant challenge for businesses, particularly as industries evolve and new demands emerge. Apprenticeships are one of the most effective solutions to this challenge, offering businesses a way to grow their own skilled workforce while playing a part in the growth of their community by creating opportunities for individuals to gain valuable work experience and become a loyal and skilled employee. However, navigating the financial aspects of hiring an apprenticecan be complex. That’s where the OxLEP Skills Apprenticeship Levy Scheme comes in – a resource designed to make apprenticeships more accessible and beneficial for businesses of all sizes.
What is the Apprenticeship Levy?
The Apprenticeship Levy is a UK government initiative introduced in April 2017, aimed at boosting investment in apprenticeships and ensuring businesses take an active role in developing the skills of their future workforce. The levy applies to businesses with an annual wage bill of over £3 million, which are required to pay 0.5% of their payroll towards the levy. Large employers who are not making full use of their levy can pledge their levy via the OxLEP Skills Apprenticeship Levy Scheme. OxLEP Skills has been able ringfence over £1.6 million of unused levy for the use of small and medium sized business in Oxfordshire to access and use to help towards the cost of taking on an apprentice or upskilling current staff via an apprenticeship.
Smaller businesses that don’t pay the levy can access apprenticeship funding, with the government covering 95% of the cost of apprenticeship training for these companies. This makes it an attractive option for SMEs looking to grow and future-proof their workforce!
The Benefits of the OxLEP Skills Apprenticeship Levy Scheme
At OxLEP Skills, we understand that small and medium businesses need to make the most of their resources, and the Apprenticeship Levy Scheme is designed to do just that. If you are a small or medium business in Oxfordshire seeking to benefit from apprenticeship funding, the scheme can help you recruit, train, and retain talented individuals. Here are some key advantages of engaging with the OxLEP Skills Apprenticeship Levy Scheme:
1. Recruit and Train the Workforce of Tomorrow
Apprenticeships allow businesses to shape the development of individuals from the start of their careers. By providing tailored training and real-world experience, businesses can ensure that apprentices learn the specific skills needed for their industry. Through the levy scheme, businesses can use funds to recruit apprentices who will contribute to the company’s growth while gaining invaluable qualifications. As apprenticeships range across various industries, including engineering, digital, construction, and health care, businesses can hire from a wide pool of talent.
2. Maximise the Use of Levy Funds in Oxfordshire While They Last
OxLEP Skills has retained over £3.6 million in levy pledges from large employers across the county, and has been able to allocate a first £2.3 million to helping small and medium businesses embark on an apprenticeship journey. However, there is still over £1.3 million worth of pledged levy yet to be utilised by small and medium businesses across Oxfordshire which will be lost if not used by March 2025. If you are a small or medium business in Oxfordshire who is considering upskilling or recruiting via apprenticeships, get in touch with OxLEP Skills to see how funding from the Apprenticeship Levy Scheme could help your business on the path to growth.
3. Support Business Growth and Development
Apprenticeship schemes are proven to improve productivity, bring fresh perspectives, and support business growth. By investing in apprenticeships, businesses can cultivate a loyal and skilled workforce, filling any potential skills gaps and ensuring long-term success. OxLEP Skills works closely with businesses to identify their skills needs and match them with suitable apprenticeship programmes, ensuring that the training aligns with the company’s strategic goals.
4. Attract and Retain Talent
In today’s competitive job market, attracting and retaining the right talent is essential. Apprenticeships provide businesses with the opportunity to develop individuals from within, creating a motivated and skilled workforce. Apprentices who have been trained in-house are more likely to remain with the business, as they feel valued and invested in. This reduces the cost of recruitment and employee turnover while fostering loyalty among staff.
5. Flexible Training for Employees at All Levels
Apprenticeships aren’t just for school leavers or those new to a role. Many businesses use the levy to upskill existing employees, offering them the opportunity to gain new qualifications and advance within the organisation. Whether it’s leadership training for management or technical skills development for operational staff, the flexibility of apprenticeship programmes allows businesses to create tailored learning opportunities for employees at all stages of their careers.
How OxLEP Skills Can Help Your Business
At OxLEP Skills, we’re committed to helping Oxfordshire businesses tap into the potential of apprenticeships through the Apprenticeship Llevy Sscheme. We offer tailored support to ensure businesses of all sizes understand how to access and make the most of apprenticeship funding.
From identifying the right apprenticeship programme to guiding you through the funding process, our expert team of Oxfordshire Apprenticeship Advisors is here to help. By facilitating levy transfers, we are enabling large employers to transfer up to 50%of their levy funds to smaller businesses or charities within their network. This collaborative approach strengthens the local business community, ensuring all organisations have access to the skills training they need to thrive.
Get Started with OxLEP Skills Apprenticeship Levy Scheme
If your business is looking to grow and invest in the future workforce, the OxLEP Skills Apprenticeship Levy Scheme is here to support you. We can help you navigate the process and find the right apprenticeship opportunities for your business’ needs.
To find out more about how OxLEP Skills can help your business maximise its potential through apprenticeships, visit our website or contact our team directly.
Explore more about the scheme and how you can get involved here: OxLEP Skills Apprenticeship Levy Scheme.
