If you own a business in the UK, you have probably heard about the Apprenticeship Levy. In case you haven’t heard, it’s a program that finances apprenticeship training, requiring businesses to contribute 0.5% of their payroll to fund apprenticeship training.
The government did, however, announce some transformative changes in 2024.
The Levy will soon become the Growth and Skills Levy. The goal of these modifications is to increase the impact and accessibility of training and development for companies of all sizes.
The Key Changes to the Growth and Skills Levy
- Broader training options – Levy funds can now be used by businesses for a greater variety of training programs, such as upskilling projects and shorter courses.
- Simplified processes for small businesses – The government intends to cut red tape, which will facilitate funding availability and utilisation for smaller enterprises.
- Regional skills alignment – encouraging companies to invest on training that fills in local skills shortages to build more resilient workers and stronger regional economies.
- Focus on growth sectors – Specific incentives will support training in high demand and growth industries.
Why Are These Changes Significant?
- Tailored training – non-apprenticeship training may receive up to 50% of levy funding, enabling both immediate skill development and long-term strategic upskilling.
- Streamlined processes – less administrative work, which frees up resources and time for other priorities.
- Community impact – Businesses can secure a competent workforce and support the growth of local economies by addressing regional skills gaps.
Companies need to begin planning early to reap the advantages of these changes. Here are six doable actions:
- Assess your training needs
- Engage in the consultation process
- Stay informed
- Engage with training providers
- Plan your budget
- Communicate with your team
Businesses’ ability to invest in their employees has changed significantly with the implementation of the Growth and Skills Levy.
With more flexibility, longer schedules, and more efficient procedures, this revised plan allows you to concentrate on developing a knowledgeable and flexible workforce.
The Growth and Skills Levy provides an opportunity to reconsider your training strategy, regardless of whether you’re a small firm looking to upskill your staff or a larger enterprise getting ready for new challenges. For more information please get in touch with our HR Consultants on 0345 646 0406 or fill in our online enquiry form and we will be in touch.