Page 14 - Gi February 2019 - flipbook

NEWS | EDUCATION

Apprenticeship levy viewed as a tax

by almost a third of businesses

A SIGNIFICANT
PROPORTION of businesses
continue to view the
apprenticeship levy primarily
as a tax, according to a
new survey which suggests
an ongoing reluctance
to invest in broader
development of staff.
The poll, carried out by
YouGov on behalf of Alliance
Manchester Business
School, found 29 per cent of
employers who were aware
of the levy viewed it as a tax
on business.
There are only two
months left before the
initial tranche of levy
funding, dating back to
2017, will be returned to
the Treasury if it is unspent.
But the survey of 2,000
employees and 1,000 The levy requires large businesses
senior decision-makers to pay into an apprenticeship fund
found 38 per cent of
employers and 58 per cent Crowley, Skills Adviser at investment beyond levy A Department for
of staff said they still knew the CIPD. “Apprenticeships funding. Education spokesperson
nothing about the levy. might not necessarily “An individual on a said: “Our apprenticeship
And 31 per cent of suit some organisations’ training apprenticeship programme was designed
businesses that offered training strategies. They’re will be on a minimum specifically to be employer
formal training said the levy very long programmes, of a 12-month training driven and employers
made no difference to the and very specific in terms programme. It will involve are using their levy
nature of the training they of addressing skill gaps in one day away from the contributions to invest in
offered, according to People businesses. office [each week] and many their staff and the long-
Management. “Research has identified roles haven’t historically term skills and needs of
The apprenticeship that many organisations had a long experience of their business.
levy was introduced in don’t train their staff and apprenticeships as vehicles “We work closely with
April 2017 and requires firms who don’t initially towards skill development. employers to help them
businesses with an annual invest in staff training are “Even though the cost take advantage of the
wage bill of £3 million or quite unlikely to be using of the training is covered levy. We meet with them
more to pay 0.5 per cent the apprenticeship levy for businesses, they need regularly to understand
of this amount into a fund funds,” she added. to release their individuals the impact of the changes
which can be spent on Almost two thirds (65 per for one day a week, and use this feedback to
apprenticeships and other cent) of businesses in the and evidence suggests improve the system.
eligible training. Alliance Manchester study that people who do “This has led to us making
In April 2018, an Open said they didn’t currently apprenticeships are not the levy more flexible
University report found 92 offer any external training productive until after the by introducing transfers
per cent of levy funds held to staff because it was too first six months of their in April 2018, allowing
in digital accounts had not costly. Around a third (32 training,” she added. levy-paying organisations
yet been used. At the time, per cent) said they offered “There are a lot of to transfer up to 10 per
17 per cent of employers no formal professional additional investments cent of the annual value
said they had no expectation development at all. businesses need to of funds entering their
of recouping the funds. Crowley said one of the make in order to make apprenticeship service
“Many employers might underlying issues affecting apprenticeship programmes account to other
make the decision to write uptake of the levy was successful above the employers. This will
the levy off as a tax and will that a lot of its training training, which is the only increase to 25 per cent
not reinvest it,” said Lizzie requirements necessitated thing covered by the levy.” from April 2019.” ■

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News.indd 9 17/01/2019 17:18