The Apprenticeship Levy, introduced by the UK government in 2017, aims to fund new apprenticeships and support skills development across the workforce. While the levy has been a significant step towards enhancing vocational training, many large companies find themselves with unused levy funds. This is where the Apprenticeship Levy Match comes into play, offering a win-win solution for both donating and receiving companies.
Taymer Pugh, is a Key Account Manager at GM Business Growth Hub, also part of The Growth Company. She works specifically with large companies across Greater Manchester to identify opportunities for them to support and benefit from this fantastic initiative.
Use it or lose it - Donating Unused Funds
Large companies often accumulate substantial levy funds that remain unused. Instead of letting these funds expire, companies can donate up to 50% of their annual levy pot to other businesses. Here’s how donating unused funds can benefit large companies:
1. Corporate Social Responsibility (CSR):
Donating unused levy funds aligns with CSR goals, demonstrating a commitment to supporting other businesses and the wider community. This can enhance the company’s reputation and strengthen relationships with stakeholders.
2. Strengthening the Supply Chain:
By supporting smaller businesses within their supply chain, large companies can help ensure these partners have the skilled workforce needed to meet demand. This can lead to more reliable and efficient supply chain operations.
3. Positive Publicity:
Companies that actively support apprenticeships and skills development can gain positive publicity, enhancing their brand image and attracting top talent.
Receiving Funds When Pots Are Exhausted
On the flip side, large companies that have exhausted their levy pots can benefit from receiving donated funds. Here’s how:
Continued Skills Development:
Receiving additional funds allows companies to continue investing in apprenticeships and skills development, even when their own levy funds are depleted. This ensures a continuous pipeline of skilled workers.
Cost Savings:
By receiving donated funds, companies can reduce the financial burden of training and development, freeing up resources for other strategic initiatives.
Enhanced Workforce Capabilities:
Ongoing investment in apprenticeships helps build a more capable and versatile workforce, which can drive innovation and improve overall business performance.
Collaboration Opportunities:
Engaging in the levy match scheme can foster collaboration between businesses, leading to shared best practices and potentially new business opportunities.
How to Get Involved
To participate in the Apprenticeship Levy Match, companies can follow these steps:
1. Identify Unused Funds or A Need for Donated Funds:
Review your levy pot to determine the amount of unused funds available for donation or alternatively, funds needed to support further investment in your workforce’s development.
2. Find a match below:
To learn more, you can speak with colleagues at The Growth Company, who currently manage three Apprenticeship Levy Match projects:
GM Levy matchmaking service – Covering the Greater Manchester region specifically
Co-op Levy Share – National coverage and has a wage criteria that must be being paid to the receiving organisation’s apprentices, promoting the Real Living Wage;
FCSA Levy Network – National coverage and no specific wage criteria.
By leveraging the Apprenticeship Levy Match, large companies can maximise the impact of their levy contributions, support the broader business community, and continue to invest in the future of their workforce.
Whether donating unused funds or receiving additional support, the levy match scheme offers a strategic advantage that benefits all parties involved.
Alison Lightfoot, Quality Assurance and Development Manager at The FED said,
Get in touch to see how you can make the most of this scheme.
Get in touch