Combined authority partnership with bank funds £1.8m for new apprenticeships

A partnership of the West Midlands Combined Authority (WMCA) with one of the UK’s biggest banks is helping the region’s economy to recover from the Covid-19 shutdown by funding £1.8m for apprenticeship training for small and medium-sized enterprises (SMEs).

The WMCA set up the Apprenticeship Levy Transfer Fund to cover the costs of training apprentices at SMEs in the West Midlands, through large employers pledging their unspent levy.

Lloyds Banking Group was one of the first large employers to join the scheme with a pledged spend of £1.8m.

Over the past year, this has funded the training costs of 250 apprentices at 135 SMEs in the region’s fastest growing sectors including business and professional services, adult care, construction, digital and engineering.

Andy Street, the Mayor of the West Midlands, said: “It is critical that we support new jobs and training opportunities for people right across the West Midlands as we move through the economic crisis brought on by the coronavirus pandemic. This applies particularly to young people, who we know historically are disproportionately affected by economic downturns.

“Thanks to Lloyds Banking Group and other big employers who have contributed to the levy transfer fund, we are helping more and more local people find work by equipping them with the skills employers need. The region must do everything it can to keep people in work or support those who fall out, and our apprenticeship training is just one part of our wider employment work.

“I’d urge any SMEs in the West Midlands that are thinking about taking on new apprentices, or anyone out there looking for a job or change of career, to get in touch with us and find out how we can help.”

Charged by HM Revenue and Customs on all businesses with a payroll of over £3 million, the levy is held by the Government for businesses across the country to utilise the funds to pay for apprenticeship training and assessment by bringing in new talent or plugging skills gaps with their staff. Any unspent levy is retained by the Government after a two-year period.

The WMCA uses its strong local knowledge and relationships to identify large businesses which can donate unspent levy to SMEs through the Apprenticeship Levy Transfer Fund, covering 100% of their apprenticeship training and assessment costs.

This approach keeps levy money within the West Midlands region, boosting skills, job opportunities and productivity by supporting more young people and adults of all ages into work.

Jo Harris, Lloyds Banking Group ambassador for the Midlands, said: “Working with the WMCA to increase the number of apprenticeships and address skills gaps in the region is an important part of our support to drive the economic recovery in the West Midlands.

“Apprenticeships bring tangible business benefits, including increased productivity and performance; enhanced engagement and loyalty; and creating a more diverse workforce.

“It’s great to see that our investment has opened up new apprenticeships for people like Curtis and is helping to boost employment opportunities across the West Midlands at such a crucial time. I would encourage other large businesses to help to boost the region’s economic recovery by donating their unspent levy to smaller employers.”

The WMCA is now calling on SMEs who may not have considered hiring apprentices to tap into the Apprenticeship Levy Transfer Fund. Large organisations are also being encouraged to get in touch to discuss transferring their remaining levy.