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What is the Apprenticeship levy?

The levy is a type of tax paid by all UK businesses that have a payroll bill of over £3 million annually. Every month you’ll need to pay 0.5% of the payroll which then goes into a levy account. You can use the funds accumulated to invest in training an apprentice to support your business.  Make sure you spend it within two years, otherwise you’ll lose it as a tax.

Don’t worry if you’ve used up your funds, the government will still pay 90% of the remaining costs, so you’ll only have to cover 10% of training. If your business doesn’t pay the levy, the government will also cover 90% of the training costs.

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Apprenticeships Insights

The importance of upskilling throughout your career

Apr 4, 2024, 00:01 AM by Katy Thomason-Stewart
Guest writer and partner at UK Business Finance, Karl Hodson, writes about the importance of gaining new skills throughout your career.

While getting the qualifications to secure your dream job may seem like the end of a long road of exams and studying, this should not be seen as the end of your learning journey.

Continuous development of your skills and knowledge as you progress through your career is vital, and this has never been more apt than in today’s ever-changing world of work and unstoppable shift to an increasingly digital environment. The prevalence of remote working has opened up the talent pool worldwide, while the emergence of AI and machine learning is changing certain job roles and functions almost beyond recognition.

Upskilling versus reskilling

It is important here to understand the difference between upskilling and reskilling. Upskilling involves developing new skills which apply to your current job; while reskilling involves learning a whole new set of skills to allow you to make a complete career change. While reskilling is often necessary for an individual's objectives, upskilling is something which employees who are content in their current role can easily overlook, however, this would be a mistake.

Upskilling is just as important whether you are looking to continue in your current role or progress up the ranks to a more senior position. Being armed with up to date knowledge and skills that set you apart from your peers can help enhance your employability, ensure you stay relevant within your industry, as well as future-proof your career.

Upskilling can take a variety of forms, from formal qualifications, online courses and workplace training to mentoring and peer training. This process of continuous development should ideally be done in conjunction with your employer who will be able to identify any skills gaps the business is struggling to bridge, as well as, in many cases, providing the time and funding for this learning to take place.

Why you should aim to upskill

Here are just a few of the key benefits of upskilling:

Keep up with emerging technologies – In an increasingly digital world, it is imperative that you do not allow yourself to fall behind. In many cases, this means being up to date with the latest tools and software used in your industry, through to developing an understanding of the potential impact of AI on your role.

While it may seem as though AI is something to fear, in many cases, this type of machine learning can actually be used in ways which can enhance your day-to-day tasks in the workplace so long as you are aware of how best to utilise it. It may be the case that you will need to undergo a period of upskilling to allow you to fully harness the power of AI. However, once this is done, you may be able to automate many routine tasks, allowing you to become more efficient and effective in your role.

Bridge the skills gap – Your employer will be able to identify where they have a skills gap and which areas of the business are ripe for improvement. In many cases, employers will be open to providing their workforce with the necessary training to fill this gap in-house rather than having to outsource the work or undergo a recruitment process to identify a candidate already in possession of these skills. By putting yourself forward for this type of upskilling training, you are placing yourself in a powerful position by making yourself even more important to your organisation than you already are. Not only that, but you are likely to gain several transferable skills which will stand you in good stead no matter where your career takes you.

An advantage in a competitive market – Continuously honing your skills demonstrates a desire to keep up to date with the changes in your field rather than resting on your laurels, while the additional competencies you learn will help you stand out amongst your peers. Simply put, committing to a continuous process of upskilling will go a long way in enhancing your overall employability and should therefore be viewed as an investment in your career.

How to upskill in the workplace

There are many ways in which you could upskill in your current role. You may wish to take on a new professional qualification, or even just shadow your peers and colleagues. However, one great option which will give you all you need to gain skills for life is training via an apprenticeship.

The ever-changing world of data and technology means that the rise in skilled professionals in this area is imminent. No matter what industry you work in, you are guaranteed to be at an advantage if you are upskilled in this area than those who aren’t.

For many, initial thoughts of apprenticeships are that they are only recommended for recent school leavers, or that you have to make a financial sacrifice - but these are just a couple of the many misconceptions. Training via an apprenticeship will give you the skills and knowledge you need to excel, as well as practical experience so that you can show your newfound knowledge to your employer immediately.

Not only that, but you’ll have support throughout the whole process while also giving time and resources back to your employer which may otherwise be used if they were to personally help you upskill.

Find an apprenticeship that’s right for you

If you’re looking to upskill, gain skills for life, and continuously develop throughout your career, browse our apprenticeship programmes.

You can also read more about how to talk to your employer about starting an apprenticeship and send them our way so that they can get in touch with the team to find out more.

Learn more about Karl Hodson and the work that UK Business Finance is doing.

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