Why Apprenticeships are worth the effort

Government figures indicate that in 2017-8 just over 19,000 of the UK’s 1.5 million employers will qualify for the apprenticeship levy.

This equates to 1.3% of employers nationwide, and these businesses are expected to generate £2,675 million towards apprenticeships each year.[1]

However, as of December 2017, currently just 12,500 apprenticeship service accounts are registered on the system which equates to around 65% of the total 19,150 companies who are eligible.[2]

In fact, new research by Evolve Learning Group Ltd and West London College shows that only one in three (32%) of employers who qualify for the levy are taking advantage of it to train new and existing staff. This suggests that a lot of the levy funding is going unused.[3]

This shows that many businesses are still confused or sceptical about the benefits of the apprenticeship levy to them. According to recent statistics 63% of managers still haven’t heard of the apprenticeship levy.[4] 

Common misconceptions

As so many individuals and companies remain unaware of, or doubtful about, the positive impact that apprenticeships and the levy can have on their business it is vital that better communication about the benefits is established.

In this blog we try to address some of the common misconceptions and challenges that exist around apprenticeships and the apprenticeship levy. 

“Apprenticeships are a poor replacement for Higher Education.”

For a long time, apprenticeships were looked down on as they were considered a lesser qualification than a university degree. However, many apprenticeships nowadays range from Intermediate Level 2 (GCSE equivalent), up to Higher Level 7 (Masters equivalent).

Apprenticeships have also previously been associated with ‘the trades’, whereas they are in fact available across a number of industries including HR, IT, finance, management training, marketing and design. This means that a broad range of people can undertake an apprenticeship at the level that suits them based on their prior experience and career aspirations.

For this reason, increasingly, employers are starting to recognise apprenticeships for the role they play in developing highly skilled and capable employees. Careers advice within schools has also started to consider them a credible and worthwhile option for school-leavers.

“Apprenticeships are a burden to the employer.”

Apprenticeships are not only an alternative to University; they are a great way of teaching competencies and work behaviours in addition to theory and knowledge, helping organisations develop a strong talent pipeline. Any initial outlay such as investment in time is quickly recouped as the result is a trained, work-ready employee that knows the business. Think of it future-proofing your business. 

“The apprenticeship levy is not worth the hassle.”

As an employer, you may not have a choice about paying the apprenticeship levy, but you do have a choice about how you use you levy funds. And it’s simple, you can either use them to pay for approved apprenticeship training from a recognised training provider or watch the available funds disappear when they expire in 24 months.

Employer deductions which are made automatically via normal PAYE schemes and transferred directly into an online Digital Apprenticeship Service (DAS) account are subject to an additional 10% top-up payment each month from the Government. This money is then available to the employer to invest in apprenticeships. The problem is that many employers are not making the most of their apprenticeship levy funds for some of the reasons given below:

  • Employers are confused about the new rules
  • Employers are unsure about the impact of the limit on funding availability
  • Employers are putting off setting up a DAS account which is simple to do and easy to maintain and update
  • Employers are viewing the levy as an additional business tax or a burden

“I don’t want to hand over training to an external company.”

You don’t have to! Apprenticeship programmes should be designed along with the employer, maximising all of the on-the-job and off-the-job experiences on offer. However, an outside perspective can be hugely beneficial and may highlight new ways of approaching your business that have not previously been considered. This specialist insight gleaned from an external apprenticeships provider can set your programme apart from those of other companies.

In addition, external apprenticeships are delivered by professionals skilled in  training and teaching; ensuring that any training is properly received. They also have a wealth of experience in delivering a wide range of apprenticeships, giving them in-depth knowledge of many of the areas you may choose to train staff on.

 “So, is it worth it?”

This is a common question, and it is one that both employers and training providers such as ourselves are battling against every day.

The term ‘apprenticeship’ or ‘apprentice’ implies a junior role. For the majority of apprentices, this is the case. It is a junior role. It’s a learning role. An entry role. However, there are also apprenticeships out there for people that are:

  • Changing careers
  • Moving into a leadership or management role
  • In the same job, but having to undertake fundamental new skills e.g. IT
  • Wanting to get back into a career after taking time out to be a parent or carer

Whether the apprenticeships your company invest in are to train up new staff at entry level to become the capable and efficient workforce of the future, or to support existing staff to develop their careers, the additional funds that the levy generates provides an invaluable platform for your company’s development and success.

In conclusion

Since the apprenticeship levy was introduced last April it has certainly been a source of confusion and uncertainty to many businesses across the UK, but at Gi Group UK we know that the benefits of undertaking apprenticeships are manifold.

Apprenticeships help organisations build a skilled and capable talent pipeline, helping to fill the much publicised skills gap. They also create loyal employees that feel invested in and understand your business. And let’s not forget, it makes complete commercial sense.

While we foresee the implementation of the levy being an ongoing task for UK businesses it is one which is certainly worth the initial time and effort as putting in place an effective apprenticeship framework will go on to benefit your company for years to come.

To find out more about the Apprenticeships or the Apprenticeship Levy click here or contact the Gi Group Employment, Learning & Skills team at apprentice@gigroup.com.

 

[1] https://www.onefile.co.uk/explore/education/2-of-employers-are-set-to-pay-the-levy/index.html

[2]https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/682464/SFR13_2018_Appandlevystats_Feb_Commentary.pdf

[3] https://www.thehrdirector.com/business-news/apprenticeships/millions-pounds-apprenticeship-levy-money-unused/

[4] http://hrnews.co.uk/shocking-figures-reveal-extent-confusion-scepticism-unawareness-surrounding-apprenticeship-levy/

Share this article
Related articles

See our job offers

Check out our offers below and use our filters to find the job opportunity which best matches with your needs and skills.

See all job offers
Job Title: (40 roles available - 3 university sites) Pay: £12.71 per hour Contract: Part-time, fixed term Days: Monday to Friday, with some Saturday work ...
Industrial
Cleaners
Exeter, Devon, Devon
Permanent
08/05/2026
Our client based in Basingstoke are currently looking for multiple s with PPT and LLOP experience to join their team on a temporary basis. They are a well-established ...
Industrial
Warehouse Operatives
Basingstoke, Hampshire, Hampshire
Temporary
08/05/2026
Gi Group is on the lookout for enthusiastic s to join the dynamic team of our prestigious client in Gainsborough. This is an exciting ongoing role, created due ...
Industrial
Assembly Operatives
Gainsborough, Lincolnshire, Lincolnshire
Permanent
08/05/2026
Refuse Recycling Driver Class 2 Join Gi Group to support the waste and refuse collection operation of a local authority. We are currently recruiting for Class ...
Driving
Class 2 Drivers
Huntingdon, Cambridgeshire, Cambridgeshire
Contract
08/05/2026
Gi Group are recruiting s on a temp to perm basis for a supply chain specialist. Leicester, LE3 Shift Details: · Shifts available: Monday to ...
Driving
Class 1 Drivers
Leicester, Leicestershire, Leicestershire
Permanent
08/05/2026
Location - Crewe CW1 Pay Rates: Standard: £12.71 per hour (rising to £12.79 after 12 weeks) Nights: £13.00 per hour (rising to £13.70 after 12 weeks) ...
Industrial
Warehouse Operatives
Crewe, Cheshire, Cheshire
Temporary
08/05/2026
- Loughborough Gi Group are recruiting a on a temp to perm basis for a packaging supply specialist. Shift Details: Shifts available: Monday to Friday Monday, ...
Driving
Class 2 Drivers
Loughborough, Leicestershire, Leicestershire
Permanent
08/05/2026
Gi Group Scunthorpe is recruiting for a Forklift / Production Operator to join our customer's team, based in Gainsborough. Our client is a leading global business ...
Industrial
Food Processing Operatives
Gainsborough, Lincolnshire, Lincolnshire
Permanent
08/05/2026
My client is a world leading manufacturer based in Kinning Park, one of the most respected Scientific Research and Development Manufacturers in the industry, who ...
Industrial
Production Operatives
Glasgow, Glasgow, Glasgow
Temporary
07/05/2026
Refuse Recycling /Loader Join Gi Group to support the waste and refuse collection operation of a local authority. We are currently recruiting for Class 2 drivers ...
Driving
Class 2 Drivers
Huntingdon, Cambridgeshire, Cambridgeshire
Temporary
07/05/2026
My client is a world leading manufacturer based in Inchinnan, one of the most respected Scientific Research and Development Manufacturers in the industry, who give ...
Industrial
Production Operatives
Inchinnan, Renfrewshire, Renfrewshire
Temporary
07/05/2026
Gi Group are looking for experienced class 1 drivers in Wellingborough to join a well-known parcel delivery company. This will be ad-hoc to start with potential ...
Driving
Class 1 Drivers
Wellingborough, Northamptonshire, Northamptonshire
Temporary
07/05/2026
Job description Yard Compound Driver Job Title: Yard Compound Driver Job Location: Burnaston, Derby Pay Rate per hour: £12.71 days ...
Driving
Van Drivers
Derby, Derbyshire, Derbyshire
Temporary
07/05/2026
- Church Stretton / £12.71 per hour / 18‑Month Contract / Monday-Friday, 9am-5:30pm / Full Training Provided Join a global leader in life sciences manufacturing ...
Industrial
Production Operatives
Church stretton, Shropshire, Shropshire
Temporary
07/05/2026
Gi Group are looking for experienced s in Bicester, for trunking work, afternoons/nights only Pay rate : · Monday to Friday nights £20.34 including ...
Driving
Class 1 Drivers
Bicester, Oxfordshire, Oxfordshire
Temporary
07/05/2026
We are hiring METER READERS in your postcode now; no experience is required. Are you looking for Full Time work, close to home? Do you like working in an active ...
Professional
Engineering
Eastleigh, Hampshire, Hampshire
Temporary
06/05/2026
Opportunity Join Gi Group as a supporting one of the UK's biggest supermarkets, Asda as a . This isn't just seasonal help; we are looking for professional drivers ...
Driving
Class 1 Drivers
Bedford, Bedfordshire, Bedfordshire
Temporary
06/05/2026
Job Title: (Temp to Perm) Location: Nursling Pay Rate: £12.71 per hour Shifts: Lates 14:30-22:30 (core shift) + Nights available Contract Type: Temporary ...
Industrial
Logistics Operative
Southampton, Hampshire, Hampshire
Permanent
06/05/2026
Location: Andover Salary: £50,000 - £55,000 per annum Hours: Monday-Friday, office-based Contract: Permanent A long-established precision manufacturing ...
Industrial
Assembly Operatives
Andover, Hampshire, Hampshire
Permanent
06/05/2026
£19.74 per hour (including holiday pay) - PAYE only, no umbrellas Job Title: HGV Location: Bicester Shifts: Monday - Friday 03:00 - 05:00 AM Starts Tuesday ...
Driving
Class 2 Drivers
Bicester, Oxfordshire, Oxfordshire
Permanent
06/05/2026
7.5t Multi Drop Driver - Howden DN14 Pay: £16.32 / hour including advanced holiday pay (Weekly pay, PAYE only) Hours: Full-Time, Mon - Fri, 08:00 - 18:00 ...
Driving
7.5 Tonne Drivers
Kingston upon hull, East riding of yorkshire, East Riding of Yorkshire
Temporary
06/05/2026