Why they're launching the £1m fund
More than 3 million SMEs* say hiring apprenticeships is not financially viable with 35% citing cost pressure, 30% complexity of training programmes, and over 800,000 (15%) stating insufficient levy funds are a key challenge.
With nearly four in five employers (79%) saying they would be more likely to hire apprentices if additional financial support was available, the scheme could unlock hundreds of retraining opportunities for young people and career-changers.
This new initiative will provide funding to charities, social enterprises, small businesses and local authorities enabling them to train apprentices at no cost because Virgin Media O2 will transfer up to £1 million in unspent levy funds to smaller organisations to fund approved apprenticeship training.
About the levy
Organisations with an annual wage bill over £3 million are required to pay an apprenticeship levy of 0.5%, which can be used to fund skills development initiatives such as apprenticeships. However, not all organisations are able to fully utilise their levy funds.
Since April 2024, new rules allow large employers to transfer up to 50% of their levy pot to smaller businesses, helping them access vital funding for upskilling. Virgin Media O2 is committing up to £1 million to support training through levy transfers.
About the fund
This funding programme is specifically designed to support women and people from global majority backgrounds looking to progress in a STEM-based role and will help build a diverse talent pipeline and leaders of the future.
- The funds are available to cover the cost of training an apprentice and can be drawn down from Virgin Media’s pot.
- The funding is not available to cover the salary of an apprentice.
If you’re a small business, charity, social enterprise or local authority that doesn’t already pay into the levy, you can apply for funding when hiring a woman or person from the global majority undertaking a STEM based apprenticeship.
This funding is for new hires, not existing apprentices. Specifically, women into STEM based roles and people from a global majority background.
How does it work
- If you’re interested in accessing funding, the first step is to register an account or sign into the Government portal.
- You will need a GOV.UK One Login account linked to an email address you use for work.
- Add a PAYE scheme on behalf of your organisation.
- Accept the employer agreement with the Department of Education
- Visit the portal to access Virgin Media's pot and request funds.
For more details, visit £1m Apprenticeship Talent Fund
*3.5m SME figure: There are 5.5m SMEs in the UK as reported by Government in its Business and population estimates. 57% of those surveyed said hiring an apprentice was not financially viable right now.
