FEATURE TOPIC
funding. Many of the employers we work with only have to pay 5% of the costs themselves, with the remainder being funded from the levy. If an employer is big enough to pay the apprenticeship levy, what are the different ways they can use the funds set aside in their levy account? TM: The levy can be used directly for a workplace to upskill and develop their staff on the apprenticeship programme. Another option available is to transfer a percentage of the levy funds to an SME stakeholder, identified as needing the financial support to upskill or recruit a new team member. GM: Once you’ve set up your apprenticeship service account, you can use the funds for apprenticeship training. This doesn’t necessarily have to be a brand-new employee – the funds could be used to upskill current employees. You’ll need to add the pay as you earn (PAYE) accounts associated with these apprenticeships to access the funds. In addition, a maximum of 25% of unused annual funds can be transferred to other employers. CP: The levy funds can only be used to support the completion of apprenticeships and not for any other form of training. Has the payroll apprenticeship established itself as the ‘industry Standard’ when it comes to payroll qualifications, recognised by employing organisations and recruiters? TM: Employers in the payroll profession aren’t always aware of the fact there’s an apprenticeship Standard focussed on payroll and that it can lead to affiliation with a professional body, such as the CIPP. This Standard is still in its infancy and undervalued as a professional career choice for young people. It’s a viable way to upskill current workforces. GM: I think the apprenticeship route within payroll qualifications is becoming increasingly popular. However, I believe the apprenticeship itself could be advertised more effectively. If more employers were aware of the qualification, it would be acknowledged more widely. NP: That’s certainly the ambition. We aren’t completely there yet, but within the next two or three years I think we will be.
used purely on new employees. If you’re a levy-paying employer, then it’s basically free pre-paid training which can be used to upskill your current employees. New roles don’t need to be generated to use the funding. CP: This has historically been an issue, but employers are now gaining an understanding – especially levy-paying employers, though more advertisement of this would certainly help. I think it would be beneficial for non-levy employers to be more aware of how apprentices can support their staff development for both new and existing staff members. Unfortunately, there’s still a stigma around the term ‘apprenticeship’, of it being associated solely with school leavers and young adults NP: This is one of the most innovative and exciting aspects of the levy funding rules and is something many employers are unaware of. The apprenticeship is relatively new, and although there have been other legacy training options available, there are so many experienced payroll professionals out there who either didn’t have the confidence to explore them, or their employers weren’t able to afford it without the ‘leg-up’ which the levy now provides. I’ve taught the apprenticeship to some extremely competent and experienced payroll professionals, who just want the formal recognition of their skills that a qualification brings and are keen to ensure their knowledge and ways of working are up to date. Many of them have prioritised family and now want to do something for themselves. Employers who aren’t aware of this may be allowing levy funds to expire (which happens if funds are unused after 24 months). While some redistribution is a good thing (as it allows a portion of the levy funding to trickle down to SMEs), it’s also a great shame if existing staff at levy-paying organisations aren’t given the opportunity to benefit from the apprenticeship, due to a lack of understanding on the part of their employers about how the funds can be utilised. n
misguided notion they’re somehow less legitimate than other vocational learning options. IPP Education recently coming on board as an end point assessment organisation might change that, because it gives learners and employers alike reassurance that an organisation affiliated with the CIPP is now delivering the assessments. Recruiters need to do more to encourage employers to raise the profile of the payroll apprenticeship within job adverts and to extol its unique benefits. The apprenticeship has two unique selling points. The first is the obvious funding advantages that come from the apprenticeship levy. The second is that the nature of apprenticeships means the subject is explored more deeply and holistically than ever before – apprentices who study with me learn the how as well as the why. For example, of course they’ll be taught how to do manual tax calculations, but before that they’ll learn what tax is and how the taxation system has evolved into the PAYE mechanism we use today. To do that, we’ll go right back to William Pitt the Younger, the Napoleonic Wars and the Beveridge reforms. This will set the payroll function in its proper context as one of the most important professions in the UK economy. It will help learners to engage with the materials in a more profound way than if they’re simply taught the calculations without the underpinning rationale. Employers in the payroll profession aren’t always aware of the fact there’s an apprenticeship Standard focussed on payroll Is there a lack of understanding that apprenticeship levy funds can be used to upskill existing employees, as well as traditional ‘school leaver’ apprentices entering the profession? TM: Yes, many employers don’t fully understand the levy and its purpose. They simply accept it as a ‘tax expense’. GM: I believe there is. Unfortunately, there’s still a stigma around the term ‘apprenticeship’, of it being associated solely with school leavers and young adults. If more people were aware of how they could use their funding, it would stop it being
Some learners are tentative about apprenticeships, perhaps through the
| Professional in Payroll, Pensions and Reward | February 2023 | Issue 87 38
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