Speaking today (Thursday) at the Apprenticeships Conference in
London, Jane Gratton, Head of Skills at the British Chambers of
Commerce (BCC), will warn about the need for reform of the
Apprenticeship Levy to make it workable for business.
One year after the introduction of the Apprenticeship Levy, the
leading business organisation is calling for reform of the system
which is causing confusion and frustration among the UK business
community and acts as a brake on skills development.
Many firms are finding it difficult to engage with the system due
to its complexity, and regard it as another tax, rather than a
useful tool for moulding and training the skills needed for the
future.
Statistics from the Department of Education show that since the
introduction of the Levy in April 2017, the number of
apprenticeship starts has decreased significantly. The latest
figures show a 25% drop in starts compared to the same time last
year.
Addressing the conference, Jane Gratton will
say:
(Check against delivery)
“Today most sectors and regions of the UK are facing skills
shortages, and our research shows recruitment difficulties across
the economy stand near record highs. In this environment, and
with virtually full employment, plugging the skills gap must be
at the forefront of the government’s agenda.
“Businesses recognise that apprenticeships are a crucial tool in
shaping the skills of tomorrow, but the current restrictions and
inflexibility of the system make it unfit for purpose. For many
levy payers it feels like a tax, or redirects funds set aside for
other forms of workplace training. At the other end of the
spectrum, the funding rules mean that SMEs are facing higher
recruitment costs, and are unsure how and where to access quality
training providers.
“The aim of the Apprenticeship Levy is laudable, but its
structure and implementation are obstacles to training the talent
of tomorrow. The government needs to urgently engage with
business and training providers to make it work for everyone.
More support for SMEs accessing apprenticeship funding, more time
for firms to source apprenticeship training and allowing more
Levy funding to be passed down the supply chain, are all steps in
the right direction that could be easily and promptly
implemented.
“Once the necessary reforms are made, a period of stability in
the UK’s training system is needed to give businesses the
certainty and confidence to engage and invest in the long-term.”
