Page 14 - Gi flipbook June/July 2018

NEWS | EDUCATION

Business schools create new

courses to tap apprenticeship levy

BUSINESS SCHOOLS ARE
being reinvigorated by the
apprenticeship levy, with
40 out of 113 universities
creating specific MBA
courses to take advantage
of the tax, according to a
new survey.
More than 1,400 people
will enrol in levy-friendly
MBA courses during the next
12 months, according to the
poll by TES, an education
magazine. A further two
universities said they were
in the process of setting up
courses, while others said
they were considering a
move into the market.
The apprenticeship
levy was introduced in
April 2017 and requires
businesses with a wage bill
of more than £3 million a
year to pay 0.5 per cent of
that bill for training, reports
The Financial Times.
Businesses are permitted to
spend the money on MBAs,
but only up to £18,000, Not all apprentices are
compared with the typical inexperienced school leavers
course fee of £24,000 in
the UK. Tuition fees at the the executive MBA low productivity, Ms Wilton according to Tony
top MBA providers can rise course created by Aston added, noting that the CMI Halmos, Director of the
up to £80,000. Business School. found that 71 per cent of Commission on London at
Several of the new “Just as if a software businesses do not train King’s College London.
courses, however, are company wanted to fill first-time managers. “Any new provision is
stripped down to fall within a shortage in coding About six per cent of fantastic, but not if it is just a
the levy funding limits. skills, businesses need to the 4,751 workforce at rebadging exercise,” he said.
MBAs are a controversial assess if their senior staff Grant Thornton are on MBA-level
choice for companies are equipped with the apprenticeships, according apprenticeships could
forced to set aside funds expertise to manage and to Malcolm Gomersall, be especially useful for
under the levy scheme, lead effectively,” said Head of People and entrepreneurs, for whom
since many people had Keith Schofield, Course Client Experience at the leadership skills can make
associated the scheme with Director at Aston. accountancy firm. the difference between
training school leavers. Petra Wilton, Director of “We use the whether or not the
Those that back levy- Strategy at the Chartered apprenticeship levy as an business survives into the
funded MBAs, however, Management Institute opportunity to develop long term, according to
point to research by the (CMI), said: “Too many our entire workforce,” Mr Michelle Ovens, Chair of
Office for National Statistics, people still harbour Gomersall said, adding that the Small Business Charter.
which concluded that a the outdated idea of the firm’s apprenticeships “A great number of small
0.1 rise in management apprentices only being are offered from entry level businesses are started
effectiveness led to a 9.6 young men in overalls, to senior managers. by people with passion
per cent rise in productivity. getting their hands dirty The levy is working and an expertise in their
Senior managers from while learning a trade.” if it is attracting senior field, but little training in
property companies and A lack of investment in executives who have not management,” she said. “We
catering firms are among management skills is one of been to university to study need founders to develop
the 19 students starting the main causes of the UK’s for a degree qualification, these skills.” ■

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News.indd 9 17/05/2018 13:50