Employers across the West Midlands are being encouraged to view the Apprenticeship Levy as a way of plugging the skills gap, an issue which is at the top of many business agendas.
Co-sponsor and host of the upcoming breakfast event on Wednesday, March 1, Grant Thornton says that viewed positively the Apprenticeship Levy, which takes effect in May, could help local employers boost skills within their businesses and help unleash the region’s untapped economic potential.
Mike Herdman, who leads Grant Thornton’s employer solutions team in the region and is a panellist at thebusinessdesk.com event, explained: “We do appreciate that businesses are being subjected to a range of rising costs such as new business rates, the higher National Minimum/Living Wage and the impact of a weak pound, but the Apprenticeship Levy will soon become a reality for many of our region’s growing businesses.
“Our experience advising over 600 companies on the new regime is that in many cases it can be seen as an opportunity to review the skills and training they need to create further growth and competitive advantage.”
According to Grant Thornton, many companies who will be subject to the Levy are not yet ready and there are some misconceptions about what constitutes an apprenticeship.
Herdman added: “Employers may not realise that they will get more out than they put in. As well as an allowance of £15,000 to offset against Levy payments the Government will also top up their contribution by 10%.
“Qualifying schemes include degree and masters qualifications and can be created in any sector or functional area, for new hires or existing employees.
“Most businesses have a qualifying training need, but those who operate in very specialist fields and who feel they won’t benefit can probably still make improvements to workforce tax efficiencies, mitigating all or some of the cost of the Apprenticeship Levy.”
The Bridging the Skills Gap event is also being supported by South and City College. It takes place at Grant Thornton’s office being held at Colmore Plaza, from 8am-10am.
The panel will also discuss the regional skills gap and what is being done to close it, how to identify skills gaps within your business, and best practice for engaging with training providers and getting the most from the relationship.
