Businesses across Tees Valley are to benefit from the launch of a new programme set to super-charge apprenticeships across the region.
Tees Valley’s Apprenticeship Levy Matching Service will use unspent apprenticeship levy funding from major employers to create more apprenticeship opportunities and develop the region’s talent pipeline.
Under the service, Tees Valley Combined Authority will match companies with unspent funds to local businesses to cover apprenticeship training and assessment costs.
Major global names including the BBC, Amazon and bp are in the first wave of organisations to sign up to provide financial support to firms in Tees Valley.
SMEs are now being encouraged to apply for the funds so they can recruit and create apprenticeships for their businesses.
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.
Sarah Moors, BBC Head of Apprenticeships said: “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. We are proud to support SMEs with this endeavour.”
Launched in 2017 by the Government, the Apprenticeship Levy is tax on employers which is used to fund apprenticeship training.
It is payable by all employers with an annual pay bill of more than £3million at a rate of 0.5% of their total pay bill.
It allows organisations to pay an amount each year towards the costs of enabling new apprenticeships and upskilling existing employees.
Organisations generally use their levy to support those that take up apprenticeships in their own workplaces.
But when that money is not spent, it can be transferred to businesses who do not have a levy fund themselves to cover the costs for apprenticeship learning and development.
The launch of Tees Valley’s Apprenticeship Levy Matching Service also follows a recent announcement that Tees Valley will be a location for a Youth Guarantee Trailblazer.
The programme will provide up to £5million to provide innovative ways to support people aged 18–21 who are Not in Employment, Education, or Training (NEET).
Tania Cooper, Tees Valley Business Board Strategic Lead for Education, Employment and Skills, said: “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.”
Image credit: Tees Valley Combined Authority
