Five Steps to Unlock the Apprenticeship Levy's Potential

Despite schools contributing over £400 million to the apprenticeship levy since 2017, over £9 million is returned to HMRC each month in unspent funds. It's clear that school leaders need to do more to make the most of this valuable resource.

Here are five practical steps to help you unlock the full potential of the apprenticeship levy:

1. Find Out What You Have to Spend

The first step is to understand exactly what funding you have available through the levy. This will vary depending on whether you're a standalone academy, part of a multi-academy trust (MAT), or a local authority school. You may need to liaise with your MAT's finance chief or the local authority to get the full picture.

Key questions to ask:

- How much are we currently contributing to the levy?

- How can we use the funds that have accumulated?

- What specific apprenticeship training is available to us?

Getting clear on your levy pot and spending options is crucial to developing an effective plan.

2. Explore the Apprenticeship Landscape

There are hundreds of apprenticeship standards available now, but not all will be relevant or appropriate for schools. Take time to research the full range, focusing on those that align with your staff development needs and school improvement priorities.

The Institute for Apprenticeships and Technical Education has a comprehensive directory you can browse. You may also find it helpful to review suggested options from dedicated school apprenticeship providers.

3. Strategise Your Spending

Think carefully about how to use your levy funds in a way that truly supports your school's improvement journey. Map potential apprenticeships against the specific development needs of both your teaching and non-teaching staff.

This could involve upskilling existing leaders, creating a robust talent pipeline, engaging your wider support staff, or exploring options like the teaching apprenticeship. The key is aligning your levy spend to your overarching staffing and professional development strategy.

4. Communicate Clearly

Many school staff, especially teachers, have outdated perceptions of apprenticeships. Be proactive in explaining how they've evolved into high-quality, tailored development opportunities - not just for new hires, but for existing employees too.

Outline the application process, time commitment, and practical implementation. Emphasise how apprenticeships can support their own career progression and the school's goals. Clear, positive messaging will help build buy-in and excitement.

5. Consider Co-Investment & Levy Transfer

If your levy funds are limited or depleted, don't give up. Two other options to explore are co-investment and levy transfer.

Co-investment allows you to continue investing in staff development even after your levy is spent. You'll only pay 5% of the cost, with the government covering the rest.

Levy transfer, meanwhile, enables larger employers with unspent funds to contribute up to 25% of their levy to your school. Reaching out to local businesses or your local authority about this can be a game-changer.

The apprenticeship levy represents a significant opportunity for schools, but only if leaders take a proactive, strategic approach. By following these five steps, you can unlock this valuable funding source and create exceptional professional development for your entire staff.