In the latest Business Surrey blog, Renรฉe Canter, Business Surreyโs Gateway & Monitoring Officer, explains why utilising the apprenticeship levy could help you recruit and grow your business.
Whatโs stopping your business from taking on an apprentice?
Cost is quite a common concern, especially for small and medium enterprises (SMEs) with fewer than 50 employees.
Time is another, with many smaller businesses worried about the paperwork involved.
But what if someone else fills in the forms and foots the training bill for you?
Well, thatโs exactly what the apprenticeship levy transfer scheme from Surrey County Council offers – with funding to train dozens of apprentices currently available.
This makes it an ideal way for Surrey SMEs to recruit while providing opportunities to local residents.
All about apprenticeships
Apprenticeships are all about opportunity.
They allow people of all ages to earn while they learn and gain the skills they need to build a rewarding career.
Latest figures from the House of Commons Library show that more than 750,000 people took part in apprenticeships in 2022/23 financial year.
Of these, more than 5,200 were in Surrey with courses offered in a wide range of industries, from health to business to engineering and beyond.
But for many SMEs, taking on an apprentice is not something they consider due to concerns about the cost of training and levels of red tape and paperwork.
The introduction of the Apprenticeship Levy in 2017 helps significantly reduce costs and makes apprenticeships even more accessible for SMEs.
It means employers with a pay bill of over ยฃ3 million per year pay 0.5% of their salary bill towards supporting apprenticeships.
Large organisations can support SME’s who may not pay into the levy by transferring funds to them to use to fund apprenticeships in their own business.
This Apprenticeship Levy helped directly support almost 50% of all apprenticeships in 2017/18. But many businesses are still not fully leveraging this opportunity.
Five ways apprentices can support your Surrey business
1.ย Address Skills Gaps
One of the most pressing challenges businesses face today is the skills gap. As industries evolve, the demand for new skills grows, and traditional education systems often struggle to keep pace.
Apprenticeships offer a practical solution by providing tailored training that meets the specific needs of your business.
By utilising the apprenticeship levy, companies can develop a pipeline of skilled workers who are trained to their exact specifications.
2.ย Enhancing Employee Retention
Investing in apprenticeships can significantly improve employee retention rates.
Apprenticeships provide employees with clear career progression paths and the opportunity to gain recognized qualifications while earning a salary.
3.ย Boosting Productivity
Apprenticeships are not just about training; they are about enhancing productivity.
Apprentices bring fresh perspectives and new ideas to the workplace. They are often more motivated and eager to learn, which can lead to increased innovation and efficiency.
According to the UK government, businesses with established apprenticeship programs report a significant improvement in productivity.
4.ย Cost-Effective Training Solutions
For many businesses, especially small and medium-sized enterprises (SMEs), the cost of training can be a significant barrier.
The apprenticeship levy provides a cost-effective solution. Surrey County Council’s levy transfer facility can cover the full cost of the apprenticeship, which can vary from ยฃ5,000 to ยฃ40,000.
All local businesses need to do initially is fill in the application form and commit to paying the apprentice an ongoing salary. There also needs to be an ongoing commitment to support the apprentice during employment.
This makes apprenticeships an affordable option for businesses of all sizes, enabling them to invest in their workforce without breaking the bank.
5.ย Supporting Diversity and Inclusion
Apprenticeships can play a crucial role in promoting diversity and inclusion within the workplace. They’re useful in attracting a wider range of candidates, including those from underrepresented groups.
This can drive innovation and creativity, while helping businesses build a workforce that reflects the diversity of their customer base and society at large.
How to apply to the Apprenticeship Levy Transfer scheme
Surrey County Council is committed to ensuring No One is Left Behind. This is why it’s made it as easy as possible for businesses to access its Apprenticeship Levy Transfer scheme.
It is open to all businesses in Surrey and can only be used for future apprenticeships, either for new roles or existing employees. Itโs open all year round but funding is allocated on a first come, first served basis.
Business interested in exploring the opportunity can get in touch with the Business Surrey team via our business support form.
You could also apply direct using the application form. A member of the Councilโs careers team will then review your application and be in touch to support in setting-up the levy transfer.
Full terms and conditions are available on the Surrey County Council website.
