Science Industry Partnership

02 May 2019

Levy Usage starts to increase

Levy paying employers used 22 per cent of their apprenticeship levy funds in the 12 months to the end of January 2019 – a fourfold increase from the 5 per cent drawn down in the first nine months of the policy.

In total since the levy was introduced in May 2017 and up to the end of January 2019 levy-paying employers have “utilised £601 million of the funds available to them to pay for apprenticeship training in England”. This amounts to 15 per cent of the £3.9 billion total funds entering employers’ accounts in the same period.

The SIP’s own Apprenticeship Survey showed that the majority of science employers’ levy contribution remains unrecovered: only 13% of the levy raised by the respondents had been recovered for training apprentices at the time of the survey last year. 

  • 23% recovered for Industrial Sciences
  • 6% recovered for Life Sciences

From the survey results, the SIP made the following recommendations:

Recommendation 1
Introduce the ability for employers to collaborate on apprenticeships and pool levy in order to increase numbers and support SMEs through vehicles such as Apprenticeship Training Agencies (ATAs).

Recommendation 2
Continue development of employer-led science industry apprenticeship standards and ensure provider capability to deliver them.

Recommendation 3
Introduce flexibilities to apprenticeships and use of the levy to increase company engagement.

Recommendation 4
Increase the profile and promotion of the apprenticeship route into the science industry sector.

Recommendation 5
Record data on apprenticeships at a sectoral level and ensure use of sector levy in support of Industrial Strategy and Sector Deals.