education & business


Take action now ahead of new


apprenticeship levy


David Moxon, head of apprenticeships at Southampton Solent University, takes a closer look at the opportunities provided to businesses from the Government’s new apprenticeship levy, and explains the university’s role in helping them prepare for the future


“From April 2017, all businesses with a wage bill of more than £3 million a year will have to pay an apprenticeship levy of 0.5%. Other businesses will also be affected, with new funding rules for those with a smaller payroll, and additional incentives for companies with less than 50 employees.


“This is a time for businesses to look at their skills gaps – especially in a post-Brexit world – to consider what they need for the future and how those gaps will be filled. These changes put employers in the driving seat, they will effectively become the customers and, as training providers, we want to work with them to ensure we meet their future needs.


“It’s important to change the way we think about apprentices. The word apprenticeship means someone learning, and this is all about learning while you work. To us, flexible and blended learning is essential to enable people to get on with their work at the same time as studying, and this is what these apprenticeship schemes deliver.


“As a university, we see ourselves as a major regional provider of apprenticeships focusing on new higher and degree apprenticeships in areas such as leadership and management, construction, engineering, digital and technology, and health.


“These opportunities will apply equally to young learners and mature students who are reskilling or upskilling across a wide range of industries. For example, someone who has completed a more traditional


apprenticeship may want to study for a professional degree apprenticeship in an area such as leadership and management, or digital and technology solutions.


“The levy is expected to raise £2.5 billion per annum and, from April, all those businesses who pay the levy will have to procure their apprenticeship training services through the new Digital Apprenticeship Service (DAS).


“Because we’re an employer, we will also be a levy payer and we’re proud to be trailblazers as we are jointly leading a steering group of some 70 universities to write the standards for the higher education sector. We have a real advantage, not only are we already training our lecturers in terms of delivering in the classroom, we are designing the standard for the new apprenticeships and we will be the training provider as well.


“The demand has to come from employers though. From what we’re seeing, most of the businesses due to start paying the levy in May are aware of the changes, but while some have a well mobilised strategy, others are less prepared, particularly smaller companies.


“It’s quite simple, as a levy payer, you have to use it or lose it. If you don’t spend the money within 24 months on apprenticeship standards or frameworks, then it effectively becomes an extra cost.


“Even for smaller businesses, the opportunity is there to gain government assistance for 90% of training costs if they follow the apprenticeship route. And if an


THE BUSINESS MAGAZINE – SOLENT & SOUTH COAST – FEBRUARY 2017 businessmag.co.uk 9


organisation has less than 50 staff and takes on 16-18 year olds, then 100% funding is available.


“For employers, this is a huge opportunity to save money by funding employee training through the apprenticeship scheme. For employees, it’s a way to study for new skills while still being employed and earning a wage.


“Using the DAS, it’s down to employers to choose their training provider, which is why we want to sit down with organisations now to look at the skills they need, whether that’s for one or two staff, or a whole team.


“Our goal is to deliver whole solutions and we are happy to work in partnership with further education colleges and/or private training providers to do so.


“What’s important though, is that come May, levy payers will to be able to hit the ground running in terms of knowing where they will spend their apprenticeship funding – and the others shouldn’t be far behind. By talking to us now you can be ahead of the game.”


David Moxon david.moxon@solent.ac.uk solent.ac.uk


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36