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3 Ways You Can Use the Apprenticeship Levy

Since April 2019, nearly £120 million apprenticeship levy money has been absorbed by the government every month. More than £3 billion currently remains untouched as organisations only use 14% of available funding, meaning those who contribute to the fund are not getting their money’s worth from the levy.

With the current market, businesses are more reluctant to bring in new apprentices into the business, so less likely to tap into the levy. If you’ve been contributing to the levy, then chances are you aren’t making of your investment. There’s more to the levy than apprentices, and we’ve got three ways you should be using it.

Invest in training for Managers

According to The Open University, 66% of organisations lack management skills. The sudden need for businesses to begin working remotely has only added extra pressures onto your management staff. The approaches which were once considered best practice aren’t always useful in a virtual environment.

Your managers need your support to ensure they can give teams the support they need to manage a new way of working and keep focussed. The levy can send managers on high-level courses designed for those who already have years of experience within their role. 

The sudden change in the market has made funding the development of managers more challenging. However, these courses have already been paid for by apprenticeship levy contributions.

Invest in your staff

Moving from office space to a makeshift desk in the kitchen is a massive change for people. While some may have already experienced working from home, others may need time to acclimatise. To help, companies need to invest in their staff and give them the right training to continue to develop their skills.

New challenges include keeping potential customers engaged during a Zoom pitch and managing accounts remotely. Your team need to be in the best position to deal with issues quickly. This can be achieved with the right training. 

The levy allows businesses to upskill their internal teams at no cost, equipping them with everything they need to succeed in the current rocky marketplaces.

Hire a graduate

The apprenticeship levy doesn’t just help young people looking to join a business as an apprentice; it can also build the skillsets of graduates brought into the company. Those fresh out of university may have the necessary background to thrive within an organisation, but their still very new to the sector and need to learn the ropes.

This is where we utilise your levy contributions. Instead of handling the training internally, you can use your funding to send them on relevant, accredited courses. Graduates are then able to learn while they earn, allowing your team can carry on with their day-to-day.


If your payroll contributions exceed £3 million, you’ve been contributing 0.5% of the excess to the apprenticeship levy. If not used, then these funds are absorbed by the government, meaning you could be missing out. At Pareto, we’re experts in the apprenticeship space and can help demystify the levy, ensuring you’re getting your money’s worth.

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