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Could mature workers fill the skills gap, as the new levy funds training for all ages?

Could mature workers fill the skills gap, as the new levy funds training for all ages?


Engineering and manufacturing companies of any size could fill skills gaps by using the Government’s new apprenticeship levy, which came into force on 6 April. For the first time, employees aged 24 and over will attract 90% funding for apprenticeship training, with no upper age limit and with eligibility for graduates.



Under the levy, employers with a wage bill of more than £3m will pay 0.5% to fund apprenticeships. This is to meet the Government’s objective to raise £3bn a year to create 3m more ‘high-quality’ apprenticeships by 2020.Eligible employers will receive a £15,000 allowance – available through the Apprenticeship Service (previously known as the Digital Apprenticeship Service) – to offset the costs of the levy. Additional funding is available for selected groups, such as apprentices in deprived areas, people previously in care or on a health plan.



Funding for older apprentices (19+) is more beneficial under the new rules for all size companies and for both levy and non-levy payers. Companies with fewer than 50 employees will be able to access 100% funding for apprentices of aged 16-18 or under 25 with a care plan. All companies will pay just 10% on those aged 19+.



Apprenticeship Standards can now be completed at a lower level if materially different. This was never previously allowed. So if an employee has a level 3 qualification they can do a level 2 to increase skills in a different area. Moreover, multiple same levels can be completed if the discipline is materially different (for example, welding, CNC turning or mechatronics), making topping up skills considerably easier. Large employers paying the levy can now make apprenticeship training available to many more employees and offset the costs against their levy fee.



Manufacturing has accounted for 20% of growth since the recession ended and by partnering with specialist training providers, science, manufacturing and engineering businesses can tailor-make apprenticeship programmes to suit their specific needs and those of their workforce. However, the UK’s productivity still lags behind that of European countries so it’s essential for companies to be able to bring their existing workforces up to speed.





For advice and guidance from a UK leading specialist in Employment law, HR and Health and Safety Services, please contact HPC.

Link to HR news article on this story: http://hrnews.co.uk/mature-workers-fill-skills-gap-new-levy-funds-training-ages/

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