‘Government must iron out concerns in order for apprenticeships levy to be success’
Victoria Hemmingway
| Dods Monitoring
As National Apprenticeship week 2017 comes to an end, Dods Monitoring examines what the Government needs to do to make the apprenticeship levy a success.
The 10th National Apprenticeship week has now come to a close, due to be swiftly followed by large-scale changes to the apprenticeship system next month. Certainly, activity and discussion surrounding the matter seems to be reaching a crescendo, reflecting the centrality of skills to the Government’s plan to increase productivity.
In light of this, at the recent Skills Summit, the atmosphere was one of anticipation and excitement. Speakers were animated when discussing the opportunities offered to address the skills gap and were equally enthused by the prospect of ‘rebranding’ apprenticeships to facilitate respect and enthusiasm for technical education amongst students.
However concerns were also raised, and there are indeed a number of creases which need to be ironed out in order for the apprenticeships system to achieve the success the Government desires.
The importance of high quality and impartial careers advice was spoken of numerous times during the Skills Summit and has been addressed frequently in Parliament of late. Commentators speak of the need to provide teachers, students and parents with sufficient information to make informed choices about their education options, and emphasise that those providing careers advice ensure that technical routes – such as apprenticeships – are given parity of esteem alongside academic options.
Lord Baker’s amendment to the Technical and Further Education Bill will therefore be welcomed by many, as these will require English schools to allow education and training providers access for the purpose of informing students about approved technical education qualifications or apprenticeships. Although accepted, the Common’s still has to consider whether the amendment will be carried forward in the Bill.
Elsewhere, the Government have committed to publishing a renewed careers strategy, which Robert Halfon, Skills Minister, recently stated would be available in the coming months. This is due to set out the action Government will take to incentivise schools to teach students about apprenticeships and ensure that students from all backgrounds are aware of the technical education routes available to them.
Turning to the other side of apprenticeships, the employers that take apprentices on, it has been far from smooth sailing in terms of the response from the business sector. Since it was first announced in George Osborne’s 2015 summer budget the apprenticeship levy has been subject to much judgement, and received a very mixed-reception. Now, a year and eight months on, just prior to its introduction, not much has changed.
With less than a month to go until companies with a payroll of over £3m have to start paying 0.5 per cent of this into the levy, it has been widely reported that many companies are far from prepared for the practicalities of this, the effect it will have on their finances, and how they plan to spend their levy money.
There have been calls from a number of companies and sectors to delay the introduction of the levy given that Brexit uncertainty has taken a significant toll on companies’ finances and willingness to take on new staff, even apprentices. Pimlico Plumbers, a pro-levy company, called on the Government to delay the April 2017 start, and both the CBI and EEF have been amongst other voices urging the same.
The Association of Teachers and Lecturers said the apprenticeship levy risked “being a wasted opportunity” if the levy funds were not ringfenced for apprenticeships, and concerns from others sectors have been voiced that companies may simply rebrand existing training provision, rather than creating new opportunities or pathways.
Although the levy is generally thought of as applying to ‘business’ it will also apply to charities, universities and even multi-academy trusts and therefore the way in which levy funds will be spent will have to be subject to some creative thought as not all eligible organisations will have the same structures and needs.
Only time will now tell whether the introduction of an apprenticeship levy proves to be the bold Government move which puts a significant dent in the UK’s skills gap and ameliorates the productivity problem, or whether it will be an inefficient tax on businesses during an already turbulent time.
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