New pilot brokerage service looks to support inclusive economic recovery
The Leeds City Region Enterprise Partnership (LEP) in partnership with the West Yorkshire Combined Authority has supported the creation of new apprenticeship roles through its pilot brokerage service, that matches unused apprenticeship levy funding to support training opportunities through a levy transfer to support an inclusive economic recovery.
With LEP support, Portakabin, an apprenticeship levy-paying employer, has transferred its unused funds to West Yorkshire businesses Care Collection, Together in Care and Yorkshire Care at Home creating 10 new apprenticeships. This is the second time the modular building manufacturer has passed on the benefit of its allocation, previously transferring £200,000 to Bradford-based training provider Appris.
Cllr Susan Hinchcliffe, chair of the West Yorkshire Combined Authority, leader of Bradford Council and chair of the Future-Ready Skills Commission said: “As identified in our recent Future Ready Skills Commission [report], regions are best-placed to work with local employers to understand the skills in demand in their jobs market both now and in the future and then collaborate with colleges, training providers and businesses to meet these needs. Our bid to unlock a significant amount of unspent levy contributions helps to address this by creating opportunities for young people and businesses in West Yorkshire and contribute to an inclusive economic recovery from the pandemic.
“Transferring the levy is a great way for local employers to help meet local skills needs. Under a devolved settlement we want to build on this and see more levy money raised by large organisations in the region stay here, to benefit SMEs and local people.”
Nick Vernon from Portakabin said: “By working with our local LEP and Combined Authority we’ve successfully transferred our 25% to other SMEs. The process is really simple and I’m proud that Portakabin is supporting apprentices within the area.”
The apprenticeship levy is paid by businesses with an annual wage bill o f £3 million or more and is used to fund apprenticeship training and assessment. Levy-paying employers can transfer up to 25% of their contributions to support apprenticeship in smaller businesses.
The LEP is calling on other apprenticeship-levy paying businesses across the region to make the most of unspent funds and consider supporting training opportunities in local communities through a levy transfer and support the economic recovery.
The impact of COVID-19 on West Yorkshire has been severe. Analysis conducted for the Combined Authority shows that under a worst-case scenario, the pandemic could lead to 58,000 job losses in the next year, and see the unemployment rate rising to 14%, wiping £12 billion off the value of its economy.
This would mean the West Yorkshire economy, would be nearly a quarter smaller – taking it back to the size it was before the year 2000, demonstrating the importance of schemes that promote inclusive growth like the Apprenticeship Levy.
