1.1 What is the Apprenticeship Levy?
The Apprenticeship Levy is a tax, paid by employers with a pay bill of £3 million or more, which sets aside specific funding for workplace training. Companies who pay the Apprenticeship Levy have a pot of money set aside for training their employees, which can be accessed through their gov.uk digital account. The Levy has so far supported more than 313,000 people to start their workplace training journey, in areas such as leadership, management, data skills and project management.
As of 2020, the direct funding available for investment in apprenticeships was close to £2.5 billion.
The growth in apprenticeship funding shows the renewed commitment between the government and organisations to promote lifelong learning and development within the UK workforce.
Although the Apprenticeship Levy has existed since 2017, most organisations still aren’t making the most of their fund. The irony is that hundreds of England-based employees are lacking the necessary skill sets to drive productivity and growth within their organisations. Key drivers of productivity include having effective, resilient managers, and ensuring employees are engaged and motivated through lifelong learning.
1.2 How is the Apprenticeship Levy calculated?
If you’ve been contributing to the Apprenticeship Levy as an organisation, you need to know how much you have in the pot – this will help you maximize the benefits of the Levy.
The Apprenticeship Levy is 0.5% of your payroll for UK staff, along with a £15,000 allowance. The government then adds an additional 10% top-up to your levy pot.
The Levy provides businesses with digital vouchers that can be used to fund the cost of training and assessment for apprentices, as well as additional support and mentoring.
You can talk to your HR and L&D team to ask how your organisation is utilising the Apprenticeship Levy, and how you might best work together to ensure your tech skills gap is filled.
1.3 What are the benefits of using the Apprenticeship Levy for Charities?
There are so many benefits of using your Apprenticeship Levy. You can upskill your employees in key areas to drive growth and fundraising efforts within your charity and keep employees engaged, motivated and happy. You can solve skills gaps, in data or technology, to gain a competitive edge in an increasingly crowded marketplace. You can also make sure your team stays curious and innovative. Other benefits include:
Digital transformation and technological advancements - To maintain a competitive edge amidst digital transformation, apprenticeship programmes ensure employees continuously assess and integrate emerging technologies.
Data analysis - Extract key insights to aid your fundraising efforts by upskilling key employees in data analysis skills.
Drive growth for your charity - Upskilling your fundraising team in areas like data, leadership and fundraising can help you grow your charity to make the most impact in your sector.
Cybersecurity and risk – Apprenticeships equip employees with the knowledge to navigate evolving cyber threats, creating a resilient defence against cybersecurity risks.
Talent recruitment - Apprenticeships strategically address talent scarcity by developing an internal pipeline of skilled professionals.
Talent management and retention - Beyond competitive compensation, apprenticeships foster a culture of employee development, addressing the digital skills gap for long-term talent retention.
How data apprenticeships help charities improve their services - Data analysis reveals what you do and it's effectiveness, guiding resource allocation and budgeting for improved charity services.
1.4 Why are charities underutilising their Apprenticeship Levy?
Despite the Apprenticeship Levy being a critical tool in building a skilled UK workforce, most organisations in England are yet to fully recoup their levies through continuous training, and this is particularly true in the charity apprenticeship space.
We know it can be done. So why are charities underutilising their Levy pot?
Lack of awareness - Once most companies hit the payroll threshold set for the remittance of the Apprenticeship Levy, they pay the tax but rarely consider what actual benefits recouping the funds would have on the company's skill set. Currently, there are at least 1.5 million employers in England. Only about 19,000 of these employers pay for the apprenticeship levy. What's more concerning is that out of these firms, only about 20% of those who pay for the levy fully utilise the available training and development programmes. The greatest hindrance is the lack of knowledge and buy-in amongst senior stakeholders within the business.
Perception of quality – Misconceptions around apprenticeships can put some learners and employers off. This shouldn’t be the case - apprenticeships have been proven to improve business outcomes whether through increased ROI, improved processes, or digital innovation. Corndel’s programmes are developed in partnership with experts who have years of experience in industry.
The National Apprenticeship Service found that 96% of employers who had apprentices experienced at least one benefit of having them, with many naming up to eight. The CIPD noted that:
• 80% of employers have maintained or improved future skills in the business.
• 70% of employers have seen improvements in the goods and services they offer.
• 66% of employers have experienced improved staff morale
Concerns about retention – Organisations are unwilling to invest in employees if they are likely to leave part-way through or immediately after finishing their course. The good news is that Apprenticeships are likely to increase retention within organisations – in 2021, The Open University reported that 74% of organisations saw increased retention because of apprenticeship programmes.
1.5 What can I spend my Levy pot on as a charity?
Organisations can choose to spend their Levy on a variety of different programmes which will help them solve strategic objectives. Corndel offer programmes in:
Data for the Third Sector - The Imperial College London & Corndel partnership brings to market data programmes specifically tailored for Third Sector data users, to enable better understanding and communication with data, helping organisations to develop data skillsets to achieve transformational change. Learners will benefit from technical training, coaching and workplace application to develop data skills and interpersonal behaviours.
Fundraising - Develop your fundraising capability. The Corndel Diploma in Fundraising programme lasts 13 months, during which participants will develop new skills and put them into practice in their day-to-day work.
Tech and Strategic Skills - Develop your team's tech ability with our tech apprenticeship programme offering including DevOps and Software Engineering.
Leadership and Management (Levels 3 and 5) – building effective, resilient line managers and developing soft skills within teams. UK charities are increasingly recognising the importance of investing in their aspiring managers across all levels of skill and competence. Investing in your employees with award-winning management programmes, accredited by the Chartered Management Institute (CMI), will allow your organisation to attract and retain the best talent.
Executive Development for the Third Sector - Imperial College Business School and Corndel have formed a powerful new partnership to revolutionise leadership and management skills across the Third Sector in the UK. This new approach combines academic rigour with exceptional vocational training delivering tangible business impact, delivered by dedicated coaches who have Third Sector leadership experience. The programme can be entirely funded through the Apprenticeship Levy.
1.6 How have other charities used their Apprenticeship Levy?
Data leadership in action at Hospice UK
Earlier this year, we hosted a learner networking event in partnership with Imperial College Executive Education at their business school, where we spoke with Kevin Traynor, a learner in our Data Analytics Level 4 programme. Kevin is a dedicated data analyst at Rennie Grove Peace Hospice Care and credits the programme for significantly bolstering his expertise, confidence, and ability to innovate within his organisation.
His newfound proficiency has established him as the go-to data expert, the formidable "wizard in the corner". Together with Imperial College Business School, we're delighted to highlight success stories like Kevin's, showcasing the profound impact of our data programmes.
The transformative impact of leadership training on the NSPCC
Francine Kennedy, Apprenticeship Programme Manager, talks about their remarkable journey in harnessing the power of leadership training:
"The programme has allowed us to identify training needs across each directorate to meet our strategic goals. This means our workforce remains highly skilled and empowers us to adopt innovative approaches to challenges.
It enables us to be agile, making the most of every opportunity. It ensures our teams remain at the forefront of operational excellence, delivering the best service possible to children and families."
