The Government has introduced a new levy that could lead to engineering and manufacturing companies of all sizes being able to fill any skills gaps that they may have. The levy came in to force on the 6th April and it will mean that employees who are aged 24 and above will be able to attract 90% funding for apprenticeships. This new levy has no upper age limit and also has eligibility for graduates incorporated in to the scheme too.
Other the past few years it has been noted the employers have struggled to train their staff members, so the new access to funding could help companies in the engineering and manufacturing sector upskill their existing employees rather than hire more people for one specific skill.
As part of the levy it has been decided that employers that have a wage bill of more than £3 million will pay 0.5% in order to fund apprenticeships. This money will go towards the Governmentâs intention to raise £3 billion over the course of a year in order to create 3 million more apprenticeships by 2020. The Government has said that they want to create more high quality apprenticeships as soon as possible.
It has been identified that a lack of productivity is a significant drag on the economic growth in the UK. Therefore, it has been decided that boosting technical skills is a vital way to increase growth and prosperity. Engineering is marked as one of the most productive sectors within the UK economy and has produced 9% of the turnover and 11% of the gross values added to the UK economy. This growth and value ha all come from a sector that uses 6% of the UK workforce. So by providing the funds to boost the training in this sector, it is hoped that it will continue to be more successful.