Page 14 - Gi flipbook February 2018

NEWS | EDUCATION

Fee cap hits businesses using

apprenticeship levy for MBAs

BUSINESSES HOPING
TO use the money they
are required to set aside
for apprenticeships to
fund MBA and leadership
courses for senior
executives have been
frustrated by a new fee cap.
The Institute for
Apprenticeships (IFA), the
agency created by the
Department for Education to
administer the levy, has ruled
that no more than £18,000
can be spent on master’s
level degree courses.
This is short of the
£47,000 average fees
charged by the 14 British
business schools ranked by
The Financial Times among
the top 100 global MBA
programmes.
It is also several thousand
pounds less than the
average cost across the UK
market, according to the
Chartered Association of
Business Schools.
“A lot of people cannot
believe that there could
be such a short-sighted
approach to funding of Employers had hoped
something that we know the levy would pay
we need,” said Anne Kiem, for employee MBAs
Chief Executive of the
Chartered Association of said the tragedy was that the master’s degree sectors as part of efforts
Business Schools. the cap would block many apprenticeship programme to improve the UK’s poor
Many business schools British companies from is already starting several productivity record.
will now drop plans to accessing what is world months later than originally Any company or public
develop levy compliant class leadership training. planned due to delays by sector body whose salary
courses, Ms Kiem told The “It feels like an opportunity IFA committees setting bill exceeds £3 million has
Financial Times. lost,” he said. the standards for levy- to pay the levy, which is a
Companies booked on But businesses have compliant courses, Ms 0.5 per cent tax on their
more expensive courses will “reluctantly” decided not Wilton noted. payroll. They can then
now either have to top up to challenge the decision “We just have to be claim vouchers from the
the difference themselves because it might delay realistic that there now government to spend on
or switch executives on further what has already won’t be that much courses for their apprentices.
to cheaper programmes been a protracted course movement in business Research commissioned
offered by less reputable approval process. education,” she said. by the Department for
business schools. “Pragmatism rules the The government Business, Innovation and
Simon Littlewood, day rather than principle,” introduced the Skills in 2012 concluded
Partner at Grant Thornton, said Petra Wilton, Director apprenticeship levy in April, that best practice
which jointly devised a part- of Strategy at the setting a goal of creating management development
time MBA course launched Chartered Management three million additional can result in a 23 per cent
by Cranfield School of Institute. apprenticeships by 2020 increase in organisational
Management in September, The introduction of in the public and private performance. ■

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News.indd 9 18/01/2018 11:18