People Management report that there are fewer employers signing up to the apprenticeship service accounts than anticipated. Since April 2017 employers with an annual pay bill of £3 million or more will be required to pay 0.5% to the levy fund. But it is felt many are not taking advantage of this to either train new staff or up skill existing.
The Department for Education (DfE) reported that in early October only 10,500 out of 19,150 levy paying companies had opened their service accounts. Further research from the article by Evolve Learning Group shares that 37% of employers with 150 staff or more do understand the levy system, but that leaves 63% who do not understand therefore potentially losing their levy payments. Whilst companies do have 24 months to use their funding it is critical employers are educated early on in the process.
For more information and to read the full article by People Management visit their website.