Apprenticeship Levy Case Study

722 Words3 Pages
Apprenticeship Levy

The apprentice levy tax began in April 2017 and applies to all employers. The University’s annual wage bill is above £3m, and will pay 0.5% into the levy each month at an annual cost of £1.2 million.

This scheme will allow staff to further educate themselves, and in essence enhance the business of the University. However the impact of the scheme will result in a 20% loss of productivity for every member of staff on a course. The levy may also increase the potential loss of staff once gaining greater qualifications, they may look for opportunities elsewhere impacting on staff retention. Alongside the £1.2m paid to the levy the University’s cost to grow and maintain business is substantially higher.

Student Fees
…show more content…
The ability to attract students is a strange situation as a financial analysis leads us to see an increase in student numbers with the ability to maintain this year on year. This goes against the threat of the increased affordability of higher education.
This increasing trend may have a substantial downside to business, within densely populated student areas. The more people attending university courses the need for skilled labour or lower skilled requirements will be in short supply.
If the University educates students in skills that are not required for business then employment will be low as they do not have the necessary skills to carry out the work.
If we don’t offer the correct degree courses that employers and businesses require then students will not come.
This will have a major impact on Newcastle University’s’ reputation as one of the best for graduate employability with degrees that are relevant to the workplace. The University is consistantly in the top 20 for graduate career prospects.

Conclusion

The University realises there are many external factors impacting on its business survival. Issues related to Brexit are many and complex with numerous uncertainties.
The continuation of working and lobbying the government on the relevant issues are key to minimising the impact on the organisation.
The University requires the government to guarantee as a minimum the same level of research funding we currently receive from the EU
The
Get Access