Harness the Apprenticeship Levy with Harvey Nash’s Future Skills Programme
Despite coming into effect in April 2017, latest reports show employers have accessed less than 10% of the ring-fenced apprenticeship budget.
2018 apprenticeship starts are down 40% on 2017 and the government’s manifesto target of three million starts by 2020 looks under threat.
What is the apprenticeship levy?
Designed to encourage employers to invest in training, the levy is charged at a rate of 0.5% on an employer’s paybill if the paybill exceeds £3 million.
Employers receive an allowance of £15,000 to offset against their levy payment and have two years to claim this back by spending it on apprenticeships.
Non-levy paying employers (which account for 98% of UK businesses) can ‘co-invest’ in apprenticeships, paying 10% towards the cost of apprenticeship training with the government paying the rest (90%).
Is the levy misunderstood?
Traditionally associated with trades and teenagers, apprenticeships underwent a facelift when the new terms were introduced in 2017. They are now available to people (including existing employees) of all ages in all sectors.
Employers can use an apprenticeship to train existing staff in new skills or to go to market and recruit new talent. Course choice is vast, covering a range of industries, skills and levels, offering employers significant scope to tailor apprenticeship programmes to meet individual business needs.
With the right apprenticeship training partner, accessing the levy is easy and rewarding. Some of the UK’s brightest brands are taking advantage.
Siemens is using the levy as a business development opportunity, demonstrating to clients that they have strong internal apprenticeship services.
Land Rover is inspiring female engineers with degree apprenticeships.
Aviva is using the levy to fund MBA-linked senior leadership degree apprenticeships.
EY is taking on 50 more apprentices in 2018 to enhance their existing graduate development programme..
To make it as simple as possible for tech businesses take advantage of this ‘use it or lose it’ tax, Harvey Nash has developed a unique apprenticeship training programme.
The Apprenticeship Opportunity for Tech Talent
To boost the tech talent within your team, we’ve devised the Future Skills programme. With two employment models it offers maximum flexibility and minimal red tape and help you draw down the apprenticeship levy whether you pay it or not.
About Future Skills
Futures Skills follows a recruit, train, deploy, develop process and has two hiring models to choose from.
- We recruit top talent for your team, including bright graduates and high-potential career changers.
- We train them in the latest software development methodologies, giving them the skills, knowledge and behaviours needed to thrive in the realworld of software development.
- We deploy them to your development teams on-site and full-time, adding value from day one.
- We provide ongoing training and support tailored to the needs of your business.
The two hiring models deliver maximum flexibility.
Model one is a managed service. Harvey Nash employs new hires directly, taking full accountability for all aspects of their employment.
Model two is client-owned. You employ your new developers full-time, including during the initial training period. You pay a recruitment fee when hiring.
Model one enables non-levy paying employers to take advantage of Harvey Nash’s levy. It also circumvents any red tape ordinarily incurred for additional headcount because employees remain with Harvey Nash.
Model two enables you to take full advantage of the apprenticeship levy if you are a levy-paying employer.
The benefits of the programme
Improved diversity: Futures come from outside the traditional software developer talent pools, meaning more diverse teams.
Technical excellence: all Futures are put through an intensive 12-week training programme with The Corndel Software Engineering Academy.
Great value: whether using the managed service model or client-own model, you won’t get more developer for your money in the UK.
Talent creation: stop competing for experienced developers and start bringing genuinely new talent into the industry. Attract graduates and high potential career-shifters.
Low-risk: this expert partnership model means risk is shared, reducing both the likelihood and cost of failure.
When recruiting is expensive and talent is short on the ground, Future Skills offers a proven, long-term resourcing model for tech businesses. This cost-effective solution benefits both employers and the workforce and effortlessly takes advantage of a complicated tax benefit.
Find out more here.