In order to fulfil its promise of three million new apprentices by 2020, the government introduced the apprenticeship levy.

This tax on businesses with a wage bill of more than £3 million came into effect on April 6, 2017.

Nearly a year later, as we head towards National Apprenticeship Week from March 5 to 9, how are things working?

It is surprising how many firms I come across which are still unsure why they are paying the levy and how they can benefit from it. This is despite widespread promotional campaigns.

It is apparent there is still a lot to be done to unravel the myths of the levy and get businesses benefiting and not seeing it as ‘just another tax’.

Those that are paying and using the levy, are seeing the benefits.

The clear majority are using it to upskill their existing workforce.

There is no age restriction to becoming an apprentice and the range of apprenticeships is vast, so the opportunities exist for all ages and abilities.

For so long we have been saying that to increase productivity businesses need to develop their people and it appears this is happening through levy payers.

Some businesses which are paying the levy are managing to make this cost neutral.

Prior to its introduction, they were paying private providers to train their people.

Now, as levy payers, they are still spending that money but instead putting their existing workforce on apprenticeships.

One effect of this has been a considerable drop in the number of 16 to 18-year-olds starting an apprenticeship.

The government wanted three million apprenticeships by 2020 and may not have expected companies to use the levy to train their existing workforce.

If the government were they looking at it as a way of reducing youth unemployment and opening the opportunities for young people, then unfortunately the initiative is not achieving its desired outcome.

This is a real shame, as great inroads had been made across the county over the past few years to raise the awareness of taking on an apprentice and the opportunities it creates for school and college leavers.