Page 14 - Gi flipbook March 2018

NEWS | EDUCATION

Plunge in apprenticeship numbers

prompts fresh attacks on training levy

THE LATEST BIG drop
in the number of people
starting apprenticeships has
prompted fresh attacks on
the new levy introduced
to fund the training
programme.
People starting
apprenticeships fell 27
per cent to 114,400 in the
first quarter on a year-on-
year basis, official figures
show. This follows on from
the 60 per cent collapse
in apprenticeship starts
recorded in the previous
quarter, the first since the
launch of the controversial
apprenticeship levy.
The levy requires all
employers with an annual
wage bill of £3 million or
more to pay 0.5 per cent
of their staff cost into an
apprenticeship fund topped
up by the government to
finance training, according
The Telegraph. Expected to
raise £3 billion a year, the
levy has been condemned
by some as simply another
tax, with complaints it is Employers have hit out at
too hard to navigate and is the new apprenticeship levy
stopping companies from
taking on apprentices. the skills their business because apprenticeships itself against the latest
The latest decline – needs, it is taking away are too expensive for their declines.
which throws into doubt invaluable opportunities available funds.” Apprenticeships Minister
the government’s target of for the next generation Britain’s retail sector Anne Milton said: “The last
three million people starting to undertake training and is likely to be the largest year has been a period of
apprenticeships by 2020 – secure a future job.” contributor to the levy significant change, it will
has seen fresh criticism of The Institute of Directors and Helen Dickinson, take time for employers to
how the levy works. (IoD) also railed against the Director of the British adjust but we must not lose
Manufacturing industry new system, saying it “has Retail Consortium, said sight of why we introduced
trade body EEF said the clearly failed to take off and the latest decline showed our reforms in the first place
first-quarter falls show the is ripe for reform”. that “the levy, in its current – to put quality at the heart
levy “is not working and Seamus Nevin, the IoD’s form, is not working. Our of this programme, and
needs a radical rethink”. Head of Policy Research, said industry, the largest private putting control in the hands
Verity Davidge, who is the group’s members are sector employer, is critical of employers.”
in charge of education “struggling to comprehend to making this policy a Since May 2015, 1.2
and skills policy at EEF, how the system works”. success. But without million people have
said: “This should act as a He added: “Some 13 per additional flexibility in what started apprenticeships,
wake-up call to government cent of levy-paying IoD the funds can be spent the DfE said, though critics
which has failed to act on members cannot recoup on, retailers are unable to question the usefulness of
industry’s growing concerns all the money they pay in fully engage with the policy the measure, saying that
around the levy.” because of glitches in the and make the most of counting the number of
“It’s a worrying trend levy’s pricing, while a further apprenticeships.” people who complete the
which is not just hampering 11 per cent have to write The Department for training programmes would
employers’ ability to get off their payments as a tax Education (DfE) defended give a better picture. ■

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News.indd 9 15/02/2018 14:25