New matching service boosts apprenticeships

A new initiative in the Tees Valley is set to enhance apprenticeship opportunities by connecting local businesses with unspent levy funds from major employers.

The Tees Valley Apprenticeship Levy Matching Service will allocate unused apprenticeship levy funding from organisations including the BBC, Amazon and bp to support SMEs in the region. This funding will cover training and assessment costs for apprentices, helping to strengthen “a pipeline for the next generation of talent”.

The matching service, launched by the Tees Valley Combined Authority, encourages SMEs to apply for funding to recruit apprentices and develop their workforce. 

Tees Valley mayor Ben Houchen said: "We’ve spent the last seven years attracting big investors like BP and Amazon to our region and separately, worked with the BBC to encourage businesses to apply for its levy fund so they can recruit apprentices and create apprenticeships for their businesses.

“This apprenticeship funding is yet another benefit of getting big-ticket investors in - supporting our fantastic local businesses and our local workers.

“The jobs are coming and we are now putting in the work to make sure local people get the skills to access them. Local businesses are the lifeblood of our economy, and it is fantastic to see this new investment helping them grow.”

The Apprenticeship Levy, introduced by the Government in 2017, is a tax on employers with annual pay bills exceeding £3 million, charged at 0.5 per cent of their total pay. The funds support apprenticeship training and upskilling, typically within the contributing organisations. 

However, unspent levy funds can be transferred to non-levy-paying businesses to cover the costs of apprenticeship training and development, extending the benefits to a wider range of employers.

Sarah Moors, BBC head of apprenticeships, added: “The BBC is delighted to be in a position to transfer our unspent levy to support SMEs across England and create apprenticeship opportunities. 

“Using our levy in this way is enabling us to support the development of new talent for the creative, cultural and digital sectors, and to help businesses upskill existing employees.

“Taking on an apprentice creates a positive impact on any business. It’s a fantastic way to grow skills, develop careers and support your local community.”

Tania Cooper, Tees Valley business board strategic lead for education, employment and skills, added: “We warmly welcome this funding from key organisations, which will provide essential support in developing apprenticeships across Tees Valley.

“This will not only bring benefits to individuals as they build their career but also support local businesses in developing a pipeline for the next generation of talent.”

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