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Many employers want an Apprenticeship Levy reform

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REC: ‘This survey reinforces the near-deafening calls from many employers that the government must expand the levy to ensure more short course training, which will help people of different age groups’.

A new report has found that many employers are showing strong support for a reform of the Apprenticeship Levy.

The survey, included within the Recruitment and Employment Confederation’s (REC) monthly JobsOutlook report, revealed that of the 200 employers interviewed, half of them said they would benefit from a reform of the levy – in particular a focus on creating a more flexible approach that would include temporary workers.

Commenting on the findings, Kate Shoesmith, REC Deputy Chief Executive, said, “This survey reinforces the near-deafening calls from many employers that the government must expand the levy to ensure more short course training, which will help people of different age groups.

“It is a tremendous waste that 960,000 temps are ineligible for levy funding because just 2% of temporary assignments last for 12 months or more.

“It is a tremendous waste that 960,000 temps are ineligible for levy funding because just 2% of temporary assignments last for 12 months or more.

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“This oversight means the levy fails to help many people move up the career ladder, grow their skills base and reduce the impact of labour and skills shortages.

“The government will boost business growth and productivity at a critical time for the economy if they reform the levy to provide more individuals with a route to skilled work.”

Kate added, ‘“Apprenticeships are excellent – but they are not the right training for every job. We welcome that the government has recently vowed to end the misuse of apprenticeship levy funds to subsidise courses such as MBAs.

“We would like more transparency on levy use to corroborate the many different claims about the levy’s success. The businesses we represent do not think it has worked.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

Jaime Thorpe

By Published on 31st March 2023

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