Concerns grow about apprenticeship levy

That stark figure from the Chartered Institute of Personnel and Development was included in a new report that also revealed a fall in employer investment in training and apprenticeships, despite labour shortages in many UK industries.

The apprenticeship levy requires employers with an annual wage bill of more than £3m to allocate 0.5% of their monthly payroll to a pool that is used to fund apprenticeship and training initiatives.

However, businesses have criticised the scheme for being too restrictive and limited

Daniel Todaro, managing director at marketing agency Gekko Group, said: “The system is vocational and focused on hard skills. We do not manufacture or sell physical things, which is representative of much of the UK’s output. How does a scheme that supports SMEs bypass so many firms, with no relevant apprenticeships on offer for more service-orientated businesses?”

The CIPD has implored the government to offer greater financial support for SMEs and to provide advisory services to help them navigate the system. This is a view shared by Russell Dowers, the head of client solutions at MetaGedu Apprenticeships. “According to the CIPD report there has been a decline in training and investment in the UK workforce over the past 20 years, which has created a downward spiral that requires immediate attention,” he says.

To read the published article written by Dan Todaro, Managing Director please visit Business Leader

Photo from Business Leader