Employers lost access to £26 million of apprenticeship levy funding in June alone, according to the skills minister. An estimated £37 million has been taken back by the government after the first two months that funds can expire from levy-paying employers’ accounts. The Institute of Telecommunications Professionals (ITP) is urging all employers to invest in apprenticeship schemes, particularly small businesses who may not realise they are entitled to funding.
Crissi Williams, CEO of the ITP, explains: “This is a staggering amount of money which is not being used by employers. It impacts both levy and non-levy paying as both are able to use it to run apprenticeship and training schemes. In an industry facing a huge skills gap, apprenticeships are a logical way to future-proof an organisation and this funding needs to be used.”
Levy-paying employers (with a payroll of £3 million or more) pay into the pot and have 24 months in which to spend it. Once they have passed this time, the funds expire on a monthly basis.
Williams continues: “There still appears to be confusion surrounding levy funding and training. Whilst the businesses receiving funding need to spend it within 24 months, smaller businesses may be entitled to funding without realising. Setting up a scheme doesn’t have to be complicated, and every year we see the benefits apprentices contribute to our member organisations.”
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