Greater Manchester’s largest apprenticeship training organisation has developed an Apprenticeship Levy Calculator tool to help local businesses to work out the implications for them of the introduction of the levy next year.
The levy is being introduced as part of the Government’s commitment to create three million apprenticeships by 2020, and is expected to raise £3bn annually across the country. Jayne Worthington, Managing Director of The Skills Company, part of the Manchester Growth Company said:
“Although it had been widely trailed, the announcement of the introduction of the Apprenticeship Levy in the Chancellor’s autumn statement seemed to take many employers by surprise. From April 2017, employers with a pay bill of over £3m a year will have to pay 0.5% of their payroll costs towards the levy. We wanted to give employers something quick and easy to use so they could see what effect the levy would have on them.”
“For employers who will have to pay the levy, it could be a significant cost, and they will have to pay whether they employ apprentices or not, so it makes real business sense for them to get the maximum benefit that they can from that investment. The introduction of the levy comes at the same time as a new employer-led Institute for Apprenticeships which will set standards and quality, and which should be fully operational in time for the levy launch.”
“We have already started working with many businesses to plan their strategy on where to invest the levy, looking at talent and workforce development needs and planning apprenticeship recruitment and training in line with this. Businesses that take this early step will definitely be ready for the levy and maximise the investment potential and ultimate return. The calculator that we’ve developed will help companies to take that first step towards getting the most out of their investment.”
“The benefits of recruiting apprentices are well documented, with 89% of employers reporting that apprenticeships helped their business improve the quality of their product or service, and four in five employers saying that apprenticeships help to reduce staff turnover. We hope that Greater Manchester employers will take full advantage of the opportunities that apprenticeships offer to recruit young people and train them to their own standards, and to build apprentice recruitment into their workforce and succession planning.”
View the Apprenticeship Levy Calculator here.