Since its introduction in 2017, the Apprenticeship Levy has often been misunderstood, particularly among small and medium-sized enterprises (SMES). Yet for North East businesses looking to grow, upskill staff, and fill long-term skills gaps, Levy can be a golden opportunity, whether you’re paying into it or not.
What is the Apprenticeship Levy?
The Apprenticeship Levy is a government initiative requiring employers with an annual pay bill of over £3 million to contribute 0.5% of their payroll into a digital account. These funds are then used to finance apprenticeship training. However, even businesses that don’t meet the threshold (i.e. most SMEs) can still benefit through co-investment, meaning the government will cover 95-100% of the training costs, depending on the eligibility.
This presents a valuable route for SMEs to access high-quality, accredited training without a significant financial burden.
Why it Matters for North East SMEs
In the Northeast, where sectors such as logistics, engineering, and education are experiencing growth but face ongoing talent shortages, apprenticeships offer a long-term solution. Apprenticeships help businesses develop a loyal, skilled workforce tailored to their specific needs, something off-the-shelf hiring simply doesn’t provide.
With tailored support from providers like Zenith Training, businesses can align apprenticeship training with operational goals.
How to Make the Most of the Apprenticeship Levy
Understand Your Eligibility
Even if you don’t pay into the Levy, you can still access funded training. If you’re a Levy-paying business, unused funds expire after 24 months, so planning is key.
Conduct a Skills Audit
Review your workforce. Where are the skill gaps? Could junior staff benefit from Level 2 or 3 apprenticeships? Are future managers ready for a Level 5 leadership programme?
Choose the Right Training Provider
Work with a provider that understands your industry, compliance obligations, and long-term goals. Zenith Training offers a range of employer-focused apprenticeships in leadership, logistics, education, and more.
Make Use of Transfers
Large employers can transfer up to 50% of their unspent Levy funds to smaller businesses. Ask your training provider about accessing these.
Consider Upskilling Existing Staff
Apprenticeships aren’t just for school leavers. Many SMEs are now using funded training to upskill existing staff, increasing retention and productivity.
Why Work with Zenith Training?
Zenith Training supports employers across the North East to access funding, select the right apprenticeships, and deliver real workplace impact. Whether you’re a small business looking to grow or a larger organisation needing tailored leadership pathways, Zenith offers expertise, funding advice, and flexible delivery.
The Apprenticeship Levy isn’t just a tax, it’s a tool. With the right approach, North East SMEs can use it to future-proof their workforce, grow sustainably, and stay competitive. Now’s the time to stop leaving money on the table.
Learn more about apprenticeships here! For Employers – Zenith Training