Levy reform needed to increase training
Business bosses call for boost in apprenticeships
BUSINESS leaders are pleading with the Government to urgently reform the apprenticeship levy in order to boost take-up numbers and encourage more employers to offer training to youngsters.
Ahead of tomorrow’s start of National Apprenticeship Week, the CBI and British Chambers of Commerce have called on the Government to reform the levy, which critics say has failed to achieve any meaningful increase in the number of people taking up apprenticeships.
Last week Department for Education data showed that the number of people on an apprenticeship fell during the first quarter of the 2019/20 academic year, from 132,000 to 125,800, a 4.7 per cent fall for the same period the previous year.
Jane Gratton, BCC head of people policy, said: “Businesses support the drive for more and better apprenticeships, but the system needs urgent reform if they are to help our workforce reach its potential.
“We need to give firms more flexibility in how they use the levy, alongside help for smaller firms to access training more easily and at a lower cost. This will help close the productivity gap and retain local talent in communities across the country.”
A CBI spokesman said: “Businesses are committed to high-quality apprenticeships that help people build great careers. While the levy was supposed to help increase investment in skills, it has forced firms to focus on one form of training above all others – and reduced opportunities for smaller firms and younger people.
“It’s vital that the Government starts a consultation on the future of the apprenticeships system in the Budget, with the aim of supporting more investment in training at all ages and levels.”
Critics of the levy say that only 2 per cent of employers pay it and that many companies have used it to fund MBA degrees for executives, instead of places for young people.
According to Euan Blair, co-founder of the apprenticeship matching service Whitehat, one way to boost the number taking up places with employers would be to overhaul the careers advice given out in schools. He said it is imperative that schools make pupils aware of all their options and not just highlight universities.
“The Government needs to look at schools,” he said. “At the moment, it is just obvious for people to go to university. There is a lack of proper careers advice in schools. If you look at the education around career paths, there is not much information about what else you can do.”
Whitehat co-founder Sophie Adelman added that 85 per cent of the apprenticeships it helps secure come from firms that have not previously offered them.