Employers use just 14% of their levy in first 18 months

According to FE Week Employers have used just under 14% of their apprenticeship levy funds
in the first 18 months since the policy was introduced. Skills minister Anne Milton revealed the total balance of employers’ apprenticeship service accounts was £2.7 billion as of the end of September.

However, the Department for Education said that £370 million of this had been drawn down, amounting to 13.7 per cent.  Recent policy changes have aim to encourage and increase levy spending. For example, from April 2019, levy-paying employers will be able to share more of their annual funds with smaller organisations, when the levy transfer facility rises from 10 to 25 %.

Mark Dawe, chief executive of the Association of Employment and Learning Providers, said the government “needn’t panic over these figures” and said the new measures will “allow more headroom for small and medium sized enterprises to engage” with the levy. He added: “The government was right
to say in the Budget that it’ll work with business in the lead up to the spending review to evolve the system into a more accessible skills levy.”

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