Apprenticeship Levy Scheme hits £48m - supporting over 4,000 apprentices

A scheme set up by the West Midlands Combined Authority (WMCA) to fund apprenticeship training for small and medium-sized enterprises (SMEs), has now supported more than 4,000 apprentices and 1,683 SMEs thanks to £47.6 million of pledged donations from levy paying organisations.

Originally set up in March 2019, the Apprenticeship Levy Transfer Fund allows some of the UK's biggest businesses to cover 100 per cent of the training cost of apprentices for SMEs by donating their unspent apprenticeship levy, which is charged annually by Government, to the WMCA rather than having to give it back to HM Revenue and Customs.

The WMCA is now encouraging even more SME employers to recruit apprentices so that they can benefit from the scheme.

Apprenticeships provide a great way for SMEs to attract future talent as well as upskilling and reskilling their existing workforce.

Those SME’s accessing the scheme see their training costs reduced to zero, enabling them to reinvest that money to in recruiting additional apprentices or increasing apprenticeship pay to attract more candidates.

Andy Street, Mayor of the West Midlands and chair of the WMCA, said: “The Apprenticeship Levy Transfer Scheme has been a resounding success for our region. It’s fantastic to see it reach the significant milestone of supporting over 4,000 apprentices - improving skills, providing jobs, and changing lives.  

“The skills that people are learning as a result of the Apprentice Levy Transfer Scheme will set them up well for future careers and ensure we provide a lasting legacy for people across the region.”

“Thanks to the funds that larger businesses have donated, a total of 1,683 small and medium-sized enterprises have already directly benefitted by being able to bring on board apprentices and by upskilling existing employees.”

One of the 4,000 apprentices supported is Zahid Stevens (pictured), aged 45, from Halesowen. After being made redundant, Zahid is now studying for a Level 2 Rail Engineering Apprenticeship with his new employer McGinley Support Services Ltd.

Zahid said: “People think that apprenticeships are for young people but being a mature student, I have felt very much part of the team and have valuable experience to share.

“For anyone thinking about getting into an apprenticeship I would thoroughly recommend it - you can continue your learning at any age – you just need to be willing and take the opportunities that come your way.”

Zahid’s apprenticeship was funded by the levy transfer scheme through the support of donor, Lloyds Banking Group, one of the very first donors of the WMCA levy scheme and a key supporter of its initiation.

Andrew Assam, Lloyds Banking Group’s ambassador for the Midlands, said, “Working with the WMCA, we’ve been able to support 736 apprentices by sharing £6.23m of our levy funds.

“Apprenticeships are a great option and not just for the school leaver. People can grow their skills through on-the-job training and receive a salary and qualifications which can kick start their career. 

“Our firm belief is that the power of our support extends beyond the funding. For many small businesses who benefit from our funding, what they value most is having the opportunity to tap into our own deep organisational knowledge and experience when it comes to apprenticeships, workforce planning and upskilling.

“That’s why we would urge more businesses to support levy transfer initiatives, to share not only their funds but their experience.”

Businesses wishing to register their interest can sign up for more information by clicking here.

Click here to find out more about starting an apprenticeship.