Secretary at computer at kickstart2employment

Businesses could lose out as only 8% of Apprenticeship Levy Funds were spent in first year

Businesses could lose out as only 8% of Apprenticeship Levy Funds were spent in first year

(Posted on 23/04/18)

kickstart2employment is encouraging businesses with a wage bill of £3m or more to optimise their funding source or risk losing out to the Apprenticeship Levy.

The Apprenticeship Levy was brought in just over a year ago to change the funding, delivery and assessment of apprenticeships in an effort to boost the skills of the UK workforce. Yet many organisations required to pay the apprenticeship levy – those with a wage bill of more than £3m – are failing to recoup the funds from digital accounts set up by the National Apprenticeship Service. According to the Open University, £1.28billion of the £1.39billion paid in by levy-paying organisations, is currently sitting unused. A massive 92% of companies have failed to utilise the fund since the scheme launched in April 2017.

Whilst some organisations are viewing the Levy as a tax with no real expectation of recouping the funds, there is still time to access the pot, as there is a two-year window in which funds can be spent. Eligible organisations are required to register their apprenticeship accounts and many are finding the management of the new scheme challenging. This is where kickstart2employment can help. Commenting, k2e’s director, Julian Hughes, said:

“Introducing new funding schemes and legislation often causes unease and confusion initially. Getting to grips with the new rules can be time-consuming but we want businesses to know that it’s worth the effort. If businesses lack the resources required to take full advantage of everything the Levy promises, we can help. As well as optimising the Levy as a funding source, our apprenticeship specialists can tailor training schemes to suit the exact needs of individual businesses as part of our fully managed training provision.”

We specialise in helping businesses secure the funding they need to create bespoke training programmes that strengthen in-house skills. Apprenticeships are a central part of our training facility and we can work with you to maximise the opportunities offered by the Apprenticeship Levy Fund. If your organisation operates with a payroll of over £3m and you’re unsure about how the new system works, please get in touch to speak to our Apprenticeship Team today. Please call 01978 806 285 or email

Get in touch with us today to find out more
call 01978 806 285 or email