CBI call to fix 'broken' Apprenticeship Levy scheme
The Government must 'urgently' reform its Apprenticeship Levy if it is to plug the UK's chronic skills gap, a conference in Birmingham has been told.
CBI deputy director-general Josh Hardie, speaking at a major apprenticeships event, said: "The Levy in its current form isn’t fit for purpose."
“Last week’s Spring Statement saw £80 million announced to help small businesses recruit apprentices," he said. "Sounds great. But pouring good money into a bad system is like trying to bail out a sinking ship without plugging the leak.
“We needed meaningful change. What we got was another missed opportunity - more wasted time when the clock is ticking. And as long as this continues, it will only discourage firms from engaging with formal training programmes."
Speaking at the FE Week Annual Apprenticeships Conference in Birmingham, Mr Hardie said: “There’s been a 41 per cent drop in apprenticeship starts over the past year. hat a 41 per cent drop in opportunities for young people and those who want to progress in the workplace. And it shows that the Levy in its current form isn’t fit for purpose."
Mr Hardie called for more flexibility in how Levy funds can be spent on apprenticeships, so firms can work together to deliver high-quality training in their area or sector.
He acknowledged that the Government had started building an effective English skills system through the introduction of T-levels and the National Retraining Partnership, but he urged the Government to continue with its reforms to apprenticeship standards and better progression for apprentices to higher paying jobs.
Mr Hardie added: “CBI members tell us that skills shortages are the biggest risk to UK growth and competitiveness. So it’s essential that apprenticeships lead to high-skilled, high-paid jobs that are competitive in the 21st Century.
“The Apprenticeship Levy could be a vital part of the skills system. By rewarding those who do their bit and taxing those who do not, encouraging more investment. If this were in the pipeline, the CBI and its members would champion it to the rooftops.
“But unfortunately, right now, the Levy doesn’t do that. Businesses want a system that delivers for people and our economy in the long term - with a focus on quality, not numbers.”
