Over half of hospitality businesses risk ‘losing’ apprenticeship levy fund

Jill Whittaker, HIT Training managing director
29/11/2018 - 06:00
New research claims that thousands of pounds will ‘potentially be lost’ if hospitality businesses continue to waste their apprentice levy fund, which will start to expire in May 2019.

This comes from apprenticeship provider HIT Training who commissioned the research, as there is now less than six months until apprenticeship levy funding begins to expire.

With just 49% of hospitality businesses having used most of their funding to-date, the remainder ‘risk losing their apprenticeship levy fund’ said HIT.

The main reason for not using funding is because companies (37%) say they are “taking time to ensure they are investing in a high-quality programme”.

Other reasons include:

  • 22% - don’t have enough time to set up or extend an apprenticeship programme
  • 18% - don’t understand the legislation
  • 18% - haven’t found the right training provider to work with

HIT managing director Jill Whittaker said: “With the second anniversary of the Apprenticeship Levy approaching, (HIT) wanted to understand just how aware hospitality businesses are that their levy funding has an expiration date and to establish if they are maximising its potential.

“It’s really concerning that after 18 months of the legislation being in place, 40% of hospitality professionals admit they still only have a poor or very poor understanding of the Apprenticeship Levy.

With contributions expiring after 24 months, businesses are at crunch point to start using or losing some of their funding pots.

“Not only will it directly benefit their own business, but with the hospitality industry facing a skills shortage, it’s more pertinent than ever for businesses to seize the opportunity to upskill their workforce, attract new talent and improve their staff retention.

We’re encouraging hospitality employers to take full advantage of the Apprenticeship Levy to upskill their entire workforce – we can provide advice on the best way to aximize the funds available.

“After all, investing in training programmes helps to motivate employees, create a dynamic and enthusiastic workforce, and position the operator as an employer of choice”.

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