Page 14 - Gi flipbook - November 2018

NEWS | EDUCATION

Employers hit back at

apprenticeship transfer fund policy

PLANS TO REFORM the
apprenticeship levy have
been criticised by some large
employers, who have voiced
concerns that changes to
the transfer facility will have
“little impact”.
Speaking to delegates
at the Conservative party
conference in Birmingham
in October, Chancellor
Philip Hammond hailed the
“flexibility” of increasing the
annual apprenticeship levy
transfer facility from 10 to
25 per cent.
This means large levy-
paying employers will be
allowed to share more of
their annual funds with
smaller organisations from
April 2019, reports FE Week.
Mr Hammond said the
government had “heard Chancellor Philip Hammond says he has
the concerns about how listened to businesses on apprenticeships
the apprenticeship levy is
working” and will “engage Skills Funding Agency’s he said. Helen Webb, Chief to concerns from councils
with business on our plans Deputy Director of Large People Officer at the Co- about the efficacy of the
for the long-term operation Companies, described the Op, said the increase to 25 levy, but said the next
of the levy” after 2020. announcement as “just per cent is a “step in the step should be to allow
However, a number of tinkering”. right direction” but it would local areas to pool levy
employers have hit back “From my conversations be better if changes could contributions across local
at the plans and voiced with employers, even if you be brought in “sooner”, economies.
concerns that changing made the transfer level 100 including a review of the Mike Berry, National
the amount available to be per cent, it would not make current arrangements on Chair of the Federation
transferred will have little that much difference. how funds can be spent of Small Businesses,
difference overall. “Employers are much more from the levy. welcomed Mr Hammond’s
Mark Corden, Head concerned about 10 per She added: “As a business announcement, which he
of Apprenticeships at cent, 20 per cent off-the-job that has around 1,000 said has been “a key ask
Specsavers, said: “It’s training, and increasingly apprentices working with of FSB to stop the decline
not flexibility in who we inherent problems with end us at any one time, we’ve in the number of people
transfer funds to, which is point assessment.” found the controls can be taking up apprenticeships.”
the flexibility that is most Brian Berry, Chief restrictive. However Labour’s Shadow
sought. Any employer can Executive of the Federation “If the government is Skills Minister, Gordon
access apprenticeships of Master Builders, said serious about making Marsden, criticised the
in the system, there is a Mr Hammond had “in part” apprenticeships work as Chancellor’s plans, calling
difference in how much listened to the concerns of a means of equipping our them “too little, too late”.
they contribute. business, but said he “needs workforce with the skills “It’s not action, only
“The 10 per cent transfer to go much further”. they need, the remit of a consultation – and
flexibility is probably “If the Chancellor is what the levy can be spent will do little to address
only attractive to a small serious about ensuring the on needs to be broadened.” the shambles of
number of the largest levy has the desired effect, Mark Hawthorne, Chair Department for Education
public sector levy payers and increases meaningful of the Local Government ministers missing their
(I’m guessing). Moving to training across all sectors, Association’s people and target of three million
25 per cent will have little it should go further and places board, said the apprenticeships by
impact across the wider make 100 per cent of the announcement was a 2020 or the continuing
employer base.” vouchers transferable from “positive sign” that the plummeting start levels
Tony Allen, formerly the large to small companies,” government was listening for them,” he said. ■

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News.indd 9 18/10/2018 13:13