Is the apprenticeship levy the elephant in the corner of your room?

When you see the words “apprenticeship levy” – are you…

a) sitting into the smug zone… safe in the knowledge you’ve nailed your business approach and a ready to rock from April 1 ?

b) groaning a little (maybe on the inside, but groaning nonetheless) – it’s out there, you’ve looked at it and just can’t see how you can make it work ?

c) staring blankly at the screen or, your to-do list, where it’s languishing near the bottom waiting for some time to ‘do something’ ?

 

And do you believe your reaction is in line with your industry peers and UK business as a whole?

 

You  may be surprised (as I was). to know “one third of UK businesses are confused or unaware of the financial implications of the new apprenticeship levy due to be implemented in less than two months time….” (from The Telegraph, link below)

That’s potentially a lot of businesses who are unprepared.  For approx 2% of UK businesses, come April 1st, they’re going to be looking at a new line on their P&L which shows an outgoing equivalent to 0.5% of their annual payroll spend.

I’m pretty sure for most businesses in this era of post-Brexit vote economic uncertainty, that’s a spend they won’t want to be making without a clear return.

Especially in light of this nugget from totaljobs.com “36% of jobseekers would consider an apprenticeship and 49% would consider a Degree Apprenticeship in next five years.” If it’s that appealing to the talent market, it can’t be ignored.

Every business of course has the right to robustly investigate the levy and decide on it’s value, or lack of value.  (Over 34% of manufacturer’s surveyed believe it has ‘no benefits’ as per a report by the EEF (The Manufacturers Association) today.)

But even then they wouldn’t be the ones staring blankly at the screen would they?

 

 

We’re not positioning ourselves as apprenticeship experts, or levy experts.  But we are focused on helping business face their challenges and opportunities by being ‘in it with you’. After all, “If it matters to you, it matters to us.”

 

https://www.eef.org.uk/campaigning/news-blogs-and-publications/blogs/2017/mar/lifting-the-lid-on-the-levy-making-the-apprenticeship-levy-work-for-industry

 

http://www.blog.totaljobs.com/ready-apprenticeship-levy

http://www.telegraph.co.uk/education/2017/02/13/one-three-businesses-unaware-new-apprenticeship-levy-survey/