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What can a Company's Apprenticeship Levy be used for?

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In recent years, the concept of apprenticeships has undergone a remarkable resurgence, with governments and businesses recognising their potential to bridge the gap between education and employment. In the United Kingdom, the introduction of the Apprenticeship Levy in 2017 marked a significant shift in how companies invest in workforce development. The levy, which requires employers with an annual payroll of over £3 million to contribute towards apprenticeship funding, has spurred discussions on how to effectively utilise these resources.


So, what exactly can a company's apprenticeship levy be used for?

Let's explore the possibilities and opportunities that this innovative funding mechanism presents:

1. Apprenticeship Training Costs:

Primarily, the levy is designed to cover the cost of apprenticeship training. This encompasses a wide range of programmes across various industries, from traditional trades like plumbing and carpentry to cutting-edge sectors such as Corporate Responsibility and Sustainability or the Improvement Suite of apprenticeships. Employers can choose from a vast array of apprenticeship standards and frameworks tailored to meet their specific needs.

2. Developing Talent Pipelines:

One of the most valuable aspects of the apprenticeship levy is its ability to nurture talent pipelines within organisations. By investing in apprenticeship programmes, companies can cultivate a skilled workforce equipped with the knowledge and expertise necessary to drive innovation and competitiveness. Apprenticeships offer a structured pathway for individuals to acquire industry-relevant qualifications while gaining hands-on experience in the workplace.

3. Upskilling and Reskilling Employees:

In today's rapidly evolving business landscape, the demand for up-skilling and re-skilling has never been greater. The apprenticeship levy presents an opportunity for employers to invest in their existing workforce by offering apprenticeship opportunities for up-skilling or re-skilling purposes. Whether it's enhancing digital literacy, mastering new technologies, or acquiring specialised competencies, apprenticeship programmes can empower employees to adapt to changing industry requirements.

4. Addressing Skills Shortages:

Across various sectors, there exists a persistent challenge of skills shortages and mismatches. The apprenticeship levy serves as a strategic tool for companies to address these gaps by training individuals in high-demand areas. By aligning apprenticeship initiatives with industry priorities and emerging trends, employers can contribute to the development of a skilled workforce capable of driving economic growth and innovation.

5. Promoting Diversity and Inclusion:

Apprenticeship programmes offer an inclusive pathway to employment, enabling individuals from diverse backgrounds to access rewarding career opportunities. Companies can leverage the apprenticeship levy to promote diversity and inclusion within their workforce by actively recruiting and supporting apprentices from underrepresented groups. By fostering an inclusive learning environment, organisations can harness the collective talents and perspectives of their employees to achieve shared goals.

6. Building Sustainable Partnerships:

Collaboration is key to maximising the impact of the apprenticeship levy. Employers can forge strategic partnerships with training providers, educational institutions, and industry associations to design and deliver high-quality apprenticeship programmes. By pooling resources and expertise, stakeholders can create sustainable pathways for skills development and workforce advancement.


Don't use it? Lose it.

Put simply, if you don't utilise your apprenticeship levy to enhance your workforce or gift it to a partner organisation in your supply chain, you'll essentially lose it as a tax to the government! Therefore, it's advisable to make the most of this opportunity and invest in your workforce for the future success of your organisation.


In conclusion, the apprenticeship levy represents a valuable resource for companies seeking to invest in the future of their workforce. By leveraging these funds effectively, organisations can enhance productivity, foster innovation, and drive sustainable growth. Whether it's nurturing emerging talent, up-skilling existing employees, or addressing skills shortages, the apprenticeship levy offers a pathway to success in an ever-changing economy. Embracing the power of apprenticeships, companies can unlock new opportunities for individual advancement and organisational excellence.

Are you here to find out what your apprenticeship levy can be used for, so that you can enhance your employees skills and productivity?

Get in touch with one of our team today to see how GLP Training can help your company Grow, Learn and Progress.

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