Apprenticeship Levy Has Over £1 Billion of Unused Funding

As the Apprenticeship Levy celebrates its one year anniversary, data from the Open University has revealed that over £1bn in funding in the system remains unused by firms. So far, companies have paid in £1.39bn, but have only been able to withdraw £108m. The funds must be used within a year from now, before they expire. The system, proposed by then-Chancellor George Osborne, seeks to increase training opportunities, but many business leaders have been frustrated by a lack of flexibility in how the funds can be used. Seamus Nevin, Head of Policy Research at the IoD, commented: "The decline in apprenticeship starts since the levy was introduced proves that the levy and co-funding system needs to be reviewed. "Many of the new courses are not yet in place but employers already have to pay into the system. Given their contributions expire after a certain date, some employers are paying the levy tax but can't use their money for the right apprenticeships". Last week, a survey of IoD members found that only one in seven of those who pay the Levy think that it is fit for purpose.