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management & education news

APPRENTICESHIP LEVY OPPOSED BY

MOST UK EMPLOYERS, SURVEY FINDS

introduced in April 2017 by the then Crowley, Senior Skills Adviser at the CIPD.
Chancellor George Osborne, who “Reforming the existing levy and
set a target of creating three million turning it into a broader and more
apprenticeships by requiring employers flexible training levy would allow
with annual wage bills over £3 million to employers to develop existing staff
set aside an equivalent of 0.5 per cent of through other forms of accredited and
their salary cost to fund in-work training. cost-effective training, focused on
However, the scheme has courted tackling technical skills shortages in the
controversy after new apprenticeship economy,” she added.
numbers plunged 61 per cent year- A separate report by think-tank
on-year in the first three months Onward revealed there are nearly
of operation, starting a long-term twice as many over 25-year-olds doing
declining trend. In the 2020-21 apprenticeships than 19-year-olds — a
academic year, 713,000 apprenticeships reversal of the situation in 2008.
were undertaken — the lowest annual The number of entry-level
figure since 2010. apprenticeships has fallen by more
Current Chancellor Rishi Sunak than half since 2011, compared with
promised to review the levy system in a 25 per cent fall across the board, as
his spring statement, with details to big businesses that are less likely to
follow in his autumn budget. recruit school leavers have taken up
Just 17 per cent of the 2,026 senior an increasing share of apprenticeship
NEW APPRENTICESHIP NUMBERS HAVE HR managers surveyed by the CIPD starts, according to Onward.
PLUNGED SINCE THE LEVY WAS INTRODUCED between February and March supported The government said: “All taxes are
a continuation of the levy system in its under constant review and we will
FEWER THAN ONE in five employers current form, while 51 per cent backed continue to engage with businesses
supports the UK government’s reform to allow the money to fund a on the levy.
apprenticeship levy, according to range of workplace training. “We are committed to protecting
research by the Chartered Institute of “At a time of acute skill shortages and the quality of apprenticeship training
Personnel and Development, reports a decline in skills investment, when and improving the system to respond
The Financial Times. public funding is tight, we cannot allow to the legitimate concerns raised by
The apprenticeship levy was this situation to continue,” said Lizzie employers.”

DELAYING NEW LAW ‘GIVES GREEN LIGHT TO ROGUE EMPLOYERS’, SAYS TUC

BRITAIN’S TOP UNION leader has exposed the government’s weak
written to Business Secretary Kwasi position to tackle abuses.
Kwarteng to warn that dropping plans The Dubai-owned ferry operator
to legislate for tougher employment LINGTREN.COM / SHUTTERSTOCK.COM provoked outrage across the political
rights after mass sackings at P&O spectrum last month by sacking
Ferries would “side with bad bosses”. nearly 800 workers without the
Frances O’Grady, General Secretary consultations required by law, and
of the Trades Union Congress (TUC), then admitting that it had done
said the UK needed urgent “proper so deliberately. The firm is facing
legislation” through an employment criminal and civil investigations.
bill promised by ministers more than FRANCES O’GRADY, GENERAL SECRETARY A government spokesman said:
OF THE TRADES UNION CONGRESS (TUC)
two years ago but repeatedly delayed. “We are committed to building a
The government first promised an the Queen’s speech in May, when it high-skilled, high-productivity, high-
employment bill in December 2019 will lay out its plans for the coming wage economy that delivers on our
after Boris Johnson’s general election parliamentary session. ambition to make the UK the best
victory, claimed as a way to improve O’Grady said a failure to bring place in the world to work.
UK workers’ rights after Brexit. forward the plan would give a “green “This includes ensuring workers’
However, The Guardian reports light to rogue employers to treat staff rights are robustly protected while
that the government intends to leave like disposable labour”, particularly also fostering a dynamic and flexible
the long-awaited reforms out of after critics said P&O Ferries had labour market.”

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