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Investing in apprenticeships for the next generation

There is a growing interest by young people in apprenticeships; yet, a report revealed the underutilisation of the Apprenticeship Levy, with over £3.3 billion in unused funds returned to the Treasury between 2019 and 2022. How can we ensure that more apprenticeships are available to support the next generation of FMs?

THE APPRENTICESHIP & TRAINING PROVIDER’S VIEW
MARGARET GOTLIB,
ASSISTANT PRINCIPAL OF INNOVATION, PRINCIPALS AND DIRECTORS AT CAPITAL CITY COLLEGE

There is a huge demand for apprenticeships. The problem is a lack of information for employers.

From our work with apprentices across sectors, we know that potential apprentices are very much aware of the option of apprenticeships. But we find it is often the employers who are wary, not spending levies nor advertising apprenticeship jobs.

There have been several changes since last year, including the relaxation of Functional Skills requirements and introduction of shorter apprenticeships, reflecting the government’s intention to encourage more employers to recruit apprentices. However, it will take time for employers to fully understand the support available to them.

We have Business Account Managers who can explain how to do levy transfers, how to utilise the levy, how the levy can be spent, what to do if an employer runs out of levy, how to set up levy accounts, how to set up suppliers. It is quite complicated if someone hasn’t done this before, and I think some employers still find the system complicated. Others, even if they want to spend their levy, don’t know how to do it. One employer told me, “I ran out of my levy, so I can’t take any more apprentices,” and I said, “We can help you with this. There are levy transfers available.’’

The issues are misconception, complexity and outdated views from some employers who believe apprenticeships are only for entry level jobs. This needs to change, because the demand for apprenticeships is there and facilities management offers excellent opportunities. As one of the largest FM apprenticeship providers in the country, we’ve been delivering them for years and have seen excellent results.

We need to educate employers just as much as students. The Apprenticeship Levy is complex to understand and navigate. In large companies, the employees dealing with apprenticeships are not the same staff members dealing with the levy, because levy is a type of tax. And with more changes coming in April, it is daunting for some employers to have to navigate their way around these changes happening so quickly.

In the short term, employers should look for providers who have the support system in place. They are not just going to employ an apprentice; they need the provider who can support the whole process from setting Digital Apprenticeship Service (DAS) accounts to completion of the training. Facilities management is one of the sectors that benefits most, because it is so complex that apprentices need both the qualification and the practice. I met apprentices recently who moved from Level 2 to Level 3 and are ready for Level 4.

Employers should expand apprenticeship programmes alongside graduate schemes and give apprenticeships a chance. The demand is there, the enthusiasm from students is there, and the opportunity for employers is clear. What’s missing is understanding, and if we can close that gap, FM employers will see a phenomenal impact. 

THE ENGINEERING & INFRASTRUCTURE PROVIDER’S VIEW
JAMES GLADDING,
OPERATIONS DIRECTOR, NG BAILEY

At NG Bailey careful forecasting, strong internal coordination, and a clear understanding of our workforce development priorities have enabled us to maximise the value of the levy year after year. However, the recent government change requiring all levy funds to expire within a 12-month period significantly increases the urgency and complexity of this process. This shorter timeframe means that organisations must be even more strategic, agile, and forward-thinking to ensure that valuable funding is not lost.

Considering this change, it is essential that we actively seek out and embrace every appropriate opportunity the levy fund can provide. One such opportunity is the new apprenticeship unit short courses launching in April. These shorter, more flexible programmes represent a practical way to utilise levy funding in a timely manner while also addressing immediate skills gaps within the business. They offer targeted development that can be aligned to operational priorities, enabling us to respond quickly to changing business needs while ensuring compliance with the new funding rules. By planning and aligning these courses with workforce requirements, we can continue to make full and effective use of the levy.

At the same time, we recognise that managing and maximising levy opportunities is not straightforward for all organisations. Businesses without dedicated learning and development infrastructure, workforce planning capability, or internal administrative support may find it significantly more challenging to navigate funding rules, identify suitable programmes and coordinate enrolments within the required timescales. For smaller organisations in particular, limited capacity can mean that levy funds expire unused, not because there is no need for training, but because the system can be complex and resource-intensive to manage effectively. This creates a risk that the levy does not always deliver its full intended benefit across the wider business community.

We have successfully utilised levy funding to support our General Maintenance Operative (GMO) upskilling programme. This semi-skilled pathway initiative demonstrates how the levy can be used strategically to address the skills gap. The three/ four-year apprenticeship provides a clear progression route for part-qualified colleagues who are motivated to broaden their skills, take on greater responsibility, and advance their careers. By investing in structured development over a sustained period, we not only enhance individual capability and engagement but also strengthen the resilience and expertise of our workforce.

In 2025, we also launched our Digital Apprenticeship Programme to futureproof industry talent pipelines in line with 2030 digitalisation ambitions. Since its inception, 15 digital apprenticeships have commenced, ranging from Level 3 Data Analyst to Level 7 AI Specialist.

This initiative introduces digital engineers directly into the workplace, creating a new generation of technically fluent professionals equipped to lead the next wave of transformation in facilities and asset management.

Overall, while the new 12-month expiry rule presents additional challenges, it also reinforces the importance of strategic workforce planning and timely decision-making. By continuing to manage levy funds proactively, embracing new programme opportunities, and building on successful initiatives such as the GMO upskilling programme, the FM industry can ensure that the levy remains a valuable tool for supporting the next generation of FM professionals.

About Sarah OBeirne

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