Schools across the country are missing out on millions of pounds in unspent apprenticeship levy funding. UK Schools contribute around £180 million annually to the apprenticeship levy, however, only around 22% of the funds are being used. This article will discuss how schools can better utilise their levy funds to invest in staff development and save money on training.

What is the apprenticeship levy?

The apprenticeship levy is a UK tax on large organisations which is used to fund apprenticeship training.  It is payable by all schools and multi-academy trusts with an annual pay bill of more than £3 million, at a rate of 0.5% of their total. The levy is paid into a central digital apprenticeship service (DAS) that schools can access. Funding is available for both new and existing employees and the training must be delivered by an approved training provider. If the levy funds are not used within 24 months the money goes back to the treasury and is no longer available to the school.

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Why schools are missing out

There are several reasons schools are missing out on their available levy funds. Firstly, there is a lack of awareness within the sector. Many school leaders are not aware of the apprenticeship levy funds or how to access them. Secondly, there are many misconceptions around apprenticeships with employers not realising that apprenticeships are available for all learners over the age of 16 and there is no upper age restriction. Schools can also use apprenticeships to upskill existing employees and do not need to hire new apprentices specifically.

Instead of using apprenticeships, many schools pay for costly short term courses instead of utilising free apprenticeships training,  thus losing out on significant funds and valuable resources.

How schools can maximise their apprenticeship levy funds

Identify training needs

Apprenticeship training is available for a range of roles within schools in both teaching and support staff. Schools should work to identify the skills gaps within their organisation and explore ways in which they can use apprenticeships to hire or upskill their current staff.

LMP Education have recently launched two specialised programmes aimed to upskilling current school staff.

The Level 5 Specialist Teaching Assistant programme is ideal for current teaching assistants who look to upskill and specialise in a specific field.

The Level 3 Safeguarding Support Officer programme is aimed at staff who are currently working in a safeguarding role or that have safeguarding responsibilities and are looking to gain further knowledge and qualifications.

Both training programmes are funded and can help your stuff get the qualifications they need to elevate their development and further support pupils and staff.

Explore all apprenticeship programmes

Explore other savings

Aside from the apprenticeship levy, using apprenticeships to hire new talent or upskill existing members of staff can unlock other benefits for your organisation.

Firstly, schools may be eligible for a £1,000 grant for hiring apprentices aged 16-18. This is to help encourage young people to get into education and to support schools in hiring fresh talent.

Secondly employers do not have to pay National Insurance contributions for apprentices under the age of 25. This also applies for current employees that are then placed on an apprenticeship programme for further training.

Partner with an apprenticeship provider

LMP Education can support your organisation in making the most of your levy funds. We provide free services such as levy forecasting and work with your school to find the best way to make apprenticeships work for you.

Alongside this, LMP Education also offers a free recruitment service to help you find new talent for your school through apprenticeships.

Final thoughts: act now before funds are lost

Schools have an opportunity to invest in staff training at no extra cost but without action millions in potential funds will go unclaimed.

If you are interested in learning how LMP Education can help you in maximising your Apprenticeship Levy, book a discovery call with a member of the LMP team!

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