West Midlands authority trainee funding scheme pays for 'over 5,000' apprentices
A local authority scheme to help cover the costs of apprenticeship training for small and medium-sized enterprises has now funded more than 5,000 apprentices, organisers say.
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The West Midlands Combined Authority(WMCA) says its Apprenticeship Levy Transfer Fund has seen over 2,500 businesses benefit from around £51 million of pledged donations from larger, levy paying companies.
The apprenticeship levy is paid by large employers with a pay bill of over £3 million. Currently, only 2% of employers pay the levy, which is set at a rate of 0.5% of their total annual pay bill.
The scheme has seen some of the UK's biggest businesses cover 100% of the training cost of apprentices for SMEs. They do this by donating their unspent apprenticeship levy, which is charged annually by government, to the WMCA rather than giving it back to HM Revenue and Customs.
Richard Parker, Mayor of the West Midlands, launched a pledge in June last year to create 20,000 work experience, training and apprenticeship places as part of his Jobs for Everyone Priority and to tackle unemployment in the region - which in some areas is twice the national average.
“Apprenticeships are a fantastic opportunity for people to get the skills they need to pursue the career they dream of," he said.
"Through the Apprenticeship Levy Scheme, we've secured £51m of funding and opened up 5,000 opportunities for our residents.
“It’s a great scheme for our businesses too - helping them to attract future talent, upskill their existing workforce and help them grow - now and in the future.”
Those SME’s accessing the scheme see their training costs reduced to zero, enabling them to reinvest that money into recruiting additional apprentices or increasing apprenticeship pay to attract more candidates.
The scheme has seen a dozen large employers contribute to the scheme since last year, between them donating nearly £3.8 million, which the WMCA says has supported 216 SMEs and 563 apprentices.
Businesses wishing to register their interest can sign up for more information at: Apprenticeship Levy Fund.
