OneFile’s founder, Susanna Lawson, has called for a nationwide match-making service to create thousands more apprenticeships across the UK. 

Susanna’s comments follow a Government announcement of more funding and less red tape for small businesses to access investment for apprenticeships. The award-winning EdTech entrepreneur said: “The Government’s announcement is a step in the right direction. SMEs are the backbone of our economy and employers continue to face too much red tape in accessing funding. At the same time, we need very clear guidance to those employers who can’t spend all their levy, and to those who could benefit from accessing this untapped money.” 

Introduction of the Apprenticeship Levy

The Government introduced the Apprenticeship Levy in 2017, requiring all employers with an annual payroll of £3 million or more, to contribute 0.5 per cent of their total pay bill to fund apprenticeships. With a Government top-up, employers have had two years to access the levy funds, with unused money taken back by the Treasury. Many have missed the boat with millions of pounds returned to the Treasury since 2017, with one report claiming that some 30,000 more apprenticeships could have been created from unused funds in the public sector alone.  

Regional Initiatives and Potential Solutions

According to Susanna, a national-scale match-making service would assist employers in optimising the levy, referencing successful initiatives at the regional level. Apprenticeship levy matchmaking services led by authorities including South Yorkshire, Greater Manchester and West Midlands allow large employers to pool unspent apprenticeship levy funding so that it can be accessed by smaller regional businesses, rather than being reclaimed by central government. 

Advocating for Nationwide Coordination

Susanna, who serves as vice-chair of IfATE’s (Institute of Apprenticeships and Technical Education) Business Administration Route Panel, proposed that a fully resourced nationwide service would facilitate pairing like-minded businesses and organisations, offering employers opportunities to fulfill their strategic objectives through levy transfers. Such partnerships would also support their ESG (Environment, Social and Governance) commitments. 

She stated: 'We currently observe a situation in which funds are essentially returned to the Treasury instead of supporting the creation of incredible apprenticeship opportunities for people and businesses. We are witnessing a wasted opportunity on a national scale to energise our economy with eager, talented new apprentices.

The Need for Simplified Collaboration

“It should be made easier to match companies with the unspent levy to those that need it. We are seeing the success of regional schemes, such as the ones in Greater Manchester and West Midlands. A nationwide match-making scheme would help employers get together and support each other with the levy funding. For those unable to spend their levy, they can still promote apprenticeships by enabling another, smaller employer to take advantage. It’s time we did more to bring employers together to release the full potential of the funds available.”